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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- No chief of staff leaves one year before an election, says Matthew Hooton
- 'Grumpy as hell' Bill Bennett says he'll use a VPN to connect to Chelsea's club channel
- NZForex's Alex Hill says the market will be paying more attention to data, than comments from officials
- Timely chief executive Ryan Baker on making an unfashionable profit
- NZ King Salmon CEO Grant Rosewarne on his company's float plans