VIENNA, Austria—Semperit Group plans to purchase fellow Austrian firm Rico Group GmbH, a maker of liquid silicone rubber components and silicone injection molds.
"Rico is a very attractive company and represents a strategic expansion in terms of product portfolio, processing technologies, automation and materials," Semperit CEO Karl Haider said in a statement. "With Rico's engineering know-how, new and attractive markets will be increasingly developed, and growth created."
Under terms of the deal signed April 17 in Upper Austria, the purchase price is based on the assumption of a recurring EBITDA of around 16.5 million euros for the existing business, with a multiple of 12, according to a Semperit news release. That would translate to 198 million euros, or $216.4 million at the current exchange rate.
The final price is subject to a customer price adjustment mechanism on the closing of the purchase, Semperit said.
The investment payments for the plant expansion currently under construction in Thalheim, Upper Austria, also will be built into the final purchase price. Rico Group broke ground June 15, 2022, on the first phase of the project and expects the new building to be occupied sometime this year.
The deal is subject to regulatory approvals and is expected to close in the third quarter of 2023.