BEWi Group aims to become northern Europe’s leading particle foam products supplier for packaging and building insulation with its planned purchase of Synbra Holding B.V.
BEWi of Solna, Sweden has entered into a conditional agreement to buy the Netherlands-based EPS foams specialist for €117.5m from a private equity consortium led by investment firm Gilde Buy Out Partners.
The deal, will include the sale of Synbra’s manufacturing plants in Denmark, Portugal, and the Netherlands, but excludes the Dutch group’s building insulation business IsoBouw based in Abstatt, Germany.
Synbra has already agreed to sell IsoBouw separately to the acquisitive Austrian EPS group Hirsch Servo, with BEWi taking a 34% stake in the German company.
Both deals are subject to regulatory approval and are scheduled to be completed within the first six month of 2018.
BEWi Group is already a significant foam insulation and packaging player in northern Europe, employing 300 at 14 locations in the Nordic countries including Finland, Norway, Sweden and Denmark. It manufactures EPS, extruded polystyrene (XPS) insulation and expanded polypropylene packaging.
In January this year, the group strengthened its Nordic roots and position in Finland with the acquisition of the Finnish insulation materials maker Ruukin EPS Oy. of Ruukki. Ruukin achieved annual turnover worth €2.5m.
In 2016, the group had purchased leading Finnish XPS producer M-Plast Oy. of Kaavi and followed that last year by buying a 60% stake in national insulation specialist Solupak of Lieto in western Finland.
BEWi said in a statement that “Synbra’s portfolio of products, geographic footprint and skilled employees will be a valuable addition” to the group and its expansion strategy.
“Synbra’s European focus will fit very well with BEWi’s existing operations in the Nordic countries,” commented BEWi president and CEO Christian Bekken who anticipates further joint development.
BEWi Group will make its latest acquisition on a cash and debt-free basis. It intends to finance the Synbra deal through its own cash resources along with a directed share issue and bond issuance, it stated.
Synbra Holding produces a wide range of foam based materials including EPS and expanded polypropylene (EPP) for packaging and EPS for building thermal insulation products. In addition, one Netherlands offshoot, Synbra Technology has developed several environmentally friendly recyclable and biodegradable foam polymers.
In October last year, Synbra launched what it labelled the world’s first 100% polylactic acid (PLA) fully biodegradable high heat drinking cup made from with its Biofoam particle foam material.