BEWiSynbra strengthens its position in the Nordic insulation market
BEWiSynbra Group, one of the leading integrated producers of expandable polystyrene (EPS) in Europe, announces that the company has entered into an agreement to acquire an insulation facility in the Swedish city Norrköping. The acquisition supports BEWiSynbra’s strategy to strengthen its position in the Nordic insulation market.
“The facility in Norrköping will be a strategically important centre and key to secure further growth for our Nordic insulation business. Through the acquisition, we get access to high volumes of extruded polystyrene (XPS), enabling us to offer our customers a combination of EPS and XPS. In addition, the facility’s good location enables efficient supply to our Nordic construction customers” says Jonas Siljeskär, CEO of BEWiSynbra.
The Norrköping facility is currently producing large volumes of XPS used for buildings and construction. BEWiSynbra plans to invest in new technology and machinery at the facility, enabling improved efficiency and capacity for XPS, as well as an EPS production line. In addition, the facility will be equipped to recycle large volumes of used XPS into new products.
Norrköping is located in mid-Sweden with direct access to the European route E4, which secures efficient logistics. Prior to the acquisition, BEWiSynbra has identified several synergies with its existing insulation operations. This includes a planned transfer of the EPS production line at Norrtälje towards the end of 2020 and closure of that facility early 2021.
“During 2019, we have implemented several measures to increase efficiency in our Swedish operations, and we are pleased to see that this has resulted in improved earnings during the year. We have also recently secured strategically important customer contracts, and we are now ready to further strengthen our position in the Nordic insulation market” says Michael Nielsen, Managing Director and Head of Insulation Nordic.
The transaction is made by way of an acquisition of all the shares in a recently established company that owns and operates the Norrköping facility and the estimated purchase price for all the shares is approximately EUR 5.6 million (based on an enterprise value of EUR 7.3 million with adjustments for net debt and net working capital as of completion of the transaction). The largest shareholder of BEWiSynbra, KMC Family AS, has agreed to acquire the real estate on which the company operates the Norrköping facility for a consideration of approximately EUR 4.5 million in connection with completion of the transaction. The target company has not yet published audited annual results but estimated turnover for 2019 is approximately EUR 12 million. The consideration for the shares will be paid in cash upon completion. Subject to customary conditions, completion of the transaction is expected to take place by the end of February 2020.
For further information, please contact:
Marie Danielsson, CFO, tel.: +46 70 661 0047
Michael Nielsen, Managing Director and Head of Insulation Nordic., +45 72 15 7999
Charlotte Knudsen, Director of IR and Communications, tel: +47 9756 1959
About BEWiSynbra Group AB
BEWiSynbra Group is one of the largest vertically integrated producers of expandable polystyrene (EPS) in Europe, focusing on sustainable solutions for packaging and components, as well as insulation. Innovation is a key driver for the Group’s competitive advantage and sustainability, and BEWiSynbra has an ambitious approach to its recycling initiatives.
The information is such that BEWiSynbra Group AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation (596/2014/EU). The information was submitted for publication, through the agency of the contact persons set out above, at 09:00 CET on 9 January 2019.