Becoming a truly global partner
Deal Flash | Industrial machinery & componets
Nolato AB, a Swedish developer and manufacturer of products in polymer materials, has acquired GW Plastics, Inc., a US-based specialist in advanced thermoplastic and silicone solutions primarily targeting the pharmaceutical industry.
Founded in 1955 and headquartered in Bethel, Vermont, GW Plastics excels at close tolerance mold building, precision injection molding and contract manufacturing. The company, with an annual turnover of US$180 million and over 1,000 employees, has a standardized global manufacturing platform with seven production facilities in the US, Mexico, China and Ireland. Its customer base includes companies such as Medtronic, Abbott, Johnson & Johnson, Boston Scientific, Guerbet, Philips Healthcare and Covidien. “Our customers will now be able to enjoy the support and scale of the entire Nolato Group with its comprehensive product development, engineering services and extensive global manufacturing network,” said Brenan Riehl, CEO at GW Plastics, Inc. Nolato is a Swedish group with operations in Europe, Asia and North America. The company develops and manufactures products in polymer materials, such as plastic, silicone and TPE, for leading global customers within the medical technology, pharmaceutical, consumer electronics, telecom, automotive, hygiene and other sectors. In 2019, Nolato generated approximately US$840 million in net sales.
Market trends & deal drivers
As with most other verticals, the medical plastics industry is evolving from contract manufacturing, characterized by buildto-print (B2P) components on a local scale, to partnerships where the supplier is active in the innovation and design stage, offering integrated solutions on a global scale. While customers are increasingly outsourcing manufacturing to focus on core activities, they demand faster time-tomarket and “more for less” from a smaller group of true partners, which in turn is pushing partners towards offering increasingly efficient operations available on a global scale.
M&A VALUATION ASPECTS
Terms of the transaction, including valuation, remain confidential. Multiples paid for targets in the plastic injection molding industry typically fall in the 8–13x LFY EBITDA range, with medical plastics being one of the highest valued verticals in the industry, due to fundamental factors such as underlying growth, product life cycles and margins.
GW Plastics is a well-managed, well-invested company that is a great fit with our corporate culture. The business, which has historically demonstrated healthy organic growth, has extensive know-how in engineering and technology. Together with its size and geographic presence, this provides an ideal strategic combination with Nolato which will enable significant market synergies over time.CHRISTER WAHLQUIST, PRESIDENT AND CEO, NOLATO AB, SWEDEN
Oaklins brings opportunities together from across the world
Oaklins’ teams in Stockholm and Cleveland provided optimal advisory support to Nolato throughout a competitive process, helping the client to create a truly global platform for its demanding customer base.
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