Nolato acquires US company Contour Plastics - Stronger offering and geographical expansion within Nolato Medical
“Contour Plastics is a well-managed company, and is a good fit for our growth strategy and our ambition to provide a global offering with regional medical technology production,” says Hans Porat, President and CEO of Nolato.
Contour Plastics was founded in 1990, and is expected to record sales for 2010 of around USD 22 million, with a pro forma EBITDA margin of approximately 13%. The company has 180 employees and modern premises in Baldwin, Wisconsin. These premises are 9,000 sqm in size, with clean rooms accounting for 700 sqm. Its customers include a number of large medical technology companies, and the acquisition will also make it possible to offer European customers production in North America.
“This acquisition will give us a presence in the region from Minneapolis to Chicago, one of four key American medical technology clusters,” adds Christer Wahlquist, President of Nolato Medical Business Area. “It also represents a further strengthening of our overall offering, and a foundation on which to establish production in North America.”
The company is being acquired from its founder and President Barry Grant, at a purchase sum of USD 22 million (on a debt-free basis). Following the acquisition, Nolato will continue to enjoy a strong financial position, with an equity/assets ratio of approximately 44%. The acquisition is expected to have an immediate marginal positive effect on Nolato’s earnings per share from the time of the takeover onwards.
Barry Grant will continue to manage and run operations together with Gus Myran, Vice President of Operations. Mattias Persson, Director of Business Development at Nolato Medical, will head up the process of identifying key business opportunities among Contour Plastic’s existing customers, integrating the company into the Nolato Group and providing a bridge for European customers to Nolato Medical’s new North American production unit.
Telephone meeting on the acquisition at 10:00 CET today
President and CEO Hans Porat, CFO Per-Ola Holmström and Head of Business Area Christer Wahlquist will be commenting on the acquisition at a telephone meeting today, Monday 26 July, at 10:00 CET. The telephone number is +46 (0)8 301790, and the code is 389917. Presentation materials will be available prior to the meeting at www.nolato.se/ir