Swedish polymer component and product maker Nolato Group has reportedly announced that it has agreed to acquire the U.S med-tech company GW Plastics. The deal price, including contingent consideration, is anticipated to be around USD 231.17 million (SEK 1.8 billion) of which is to be paid upon ownership transfer.
Nolato, which manufactures products in polymer materials like silicone and plastics for sector ranging from telecom, medical technology, white goods, and automotive to hygiene and gardening products, said the acquisition marginally accelerate 2020 earning.
Nolato expects to finalize the deal, which is funded by own cash funds and new credit agreements, in September after getting US regulatory approvals.
According to sources familiar with the knowledge of the matter, the deal complements the company’s Medical Solution business in North America. The deal will provide the company with additional growth opportunities and underpinning current customer relationships.
The deal also strengthens the company’s leading position in Europe, Asia, and North America.
While expressing satisfaction about this deal, Christer Wahlquist, CEO, and President at Nolato said that this acquisition provides the company with a strong position and significant volumes on the key North American continent.
He added that the acquisition aids relationship current customers, while also creating additional growth opportunities for expanding the customer base.
For the record, Nolato is a Swedish group with operations in Europe, North America, and Asia.
About GW Plastics
Established in 1955, GW Plastics is a leading company specializing in complex injection-molded silicone and thermoplastic solutions with a noteworthy degree of innovation and top-notch advanced global manufacturing platform.
The company has long-standing, strong customer relationships with several market leaders across the world, especially in the healthcare, pharmaceutical, and automotive industries. The company recorded annual sales around SEK 1.8 billion with an EBIAT margin of approximately 7 percent.