Nuplex has agreed to buy Bayer's Viverso resin and coating company in Germany for €75 million.
Nuplex CEO, Emery Severin said in a statement to the NZX: “This is a very attractive opportunity for Nuplex and consistent with our strategy to establish leading market positions through value accretive, bolt-on acquisitions. Being a focused, independent resins business, Viverso’s complementary operations are a natural fit with our own European operations.|
“Viverso further strengthens a number of our leading market positions in Europe, particularly in the industrial coatings markets. It also expands our product range and include; Viverso’s environmentally friendly, solvent free, water resistant resins used in construction coatings; resins for putties used in vehicle refinish; and resins offering unique chemical resistance and high temperature performance. We see opportunities to leverage these new products across our global operations." he said.
The agreement includes a range of contracts, between 2 and 10 years in length to manufacture specialty products for Bayer.
Viverso's factory in Bitterfield employs 165 people and would increase Nuplex's regional capacity by 50%.
The price paid is equivalent to 6.5 times EBITA and Nuplex said the purchase was 100% financed by debt.
The transaction is subject to German regulatory approval, and is expected to be completed by the end of 2011.