Nolato acquires US-based medtech manufacturer with annual sales of approximately SEK 1.8 billion

TOREKOV, Sweden, Aug. 6, 2020 /PRNewswire/ --  Nolato has signed an agreement to acquire US-based GW Plastics. The company, which was founded in 1955, has annual sales of approximately SEK 1.8 billion and an EBITA margin of around 7%. The acquisition price, including contingent consideration, is estimated at approximately SEK 2 billion. The acquisition provides significant volumes and a strong position in North America for the Medical Solutions business area, offering additional opportunities for growth and underpinning existing core customer relationships. The acquisition means Nolato has a solid global position on the three key continents of Asia, Europe and North America.

"Acquisitions are, and have long been, an important part of our growth strategy, and we are continually looking to generate shareholder value by identifying high-quality companies that will strategically enhance Nolato's existing business. We have been interested in GW Plastics for some time, and it's really pleasing to be completing this deal."

"This acquisition provides us with significant volumes and a strong position on the key North American continent. It supports relationships with existing customers, while also creating additional opportunities for growth and expanding our customer base," said Nolato President and CEO Christer Wahlquist.

GW Plastics was founded in 1955 and has established a position as an industry leader specialising in complex injection-moulded thermoplastic and silicone solutions with a significant degree of innovation and a high-tech standardised global manufacturing platform. The company's products are mainly used in medical devices and, to a lesser extent, in vehicle systems. The business has annual sales of approximately SEK 1.8 billion with an EBITA margin of around 7%. The acquisition price, including contingent consideration, is estimated to be approximately SEK 2 billion, around SEK 1.8 billion of which is to be paid upon transfer of ownership. Just over four-fifths of GW Plastics business will be reported under the Medical Solutions business area, with the remainder reported under Industrial Solutions.