TOREKOV, Sweden—Nolato A.B. has completed its acquisition of Treff A.G. for about $48.3 million.
A Switzerland-based company, Treff employs about 190 at a 118,500-sq.-ft. plant in Degersheim, which also includes about 15,000 square feet in clean room space. It produces products for medical and self-care diagnostics, as well as technically advanced precision components for various industrial segments.
Nolato said in an Oct. 3 news release that Treff's sales are estimated at nearly $52 million with an EBITDA margin of about 11.5 percent. The company will be named “Nolato Treff” going forward, with about two-thirds of its operations focusing on the industrial market, which will be reported within Nolato Industrial, and the other third in the medical industry, to be reported within Nolato Medical.
“Treff will complement Nolato with a footprint in the German speaking part of Europe,” Christer Wahlquist, Nolato president and CEO, said in an email. “That will enable Nolato to further expand in this region. Treff also brings interesting technology within the high volume diagnostic production.”
The executive said Treff manufactures plastic products for both industries and will allow Nolato to further break into the vitro diagnostic market. Nolato reported about $545.7 million in sales for 2015 of which about 31 percent came from its medical business and 23 percent from its industrial segment.
Nolato is a Swedish group that operates 20 production facilities throughout Europe, Asia and North America with about 7,800 employees as of 2015. The firm develops products utilizing plastic, silicone and TPE for customers within medical technology, pharmaceuticals, telecom, automotive and hygiene among other industrial sectors.
Wahlquist said about 20 percent of its business is related to silicone and elastomers, including injection molding of liquid silicone.
In a presentation detailing the acquisition, Nolato said the purchase provides “minimal cost synergies, but is expected to generate market synergies in the long term for both business areas via new beneficial customer relationships and geographical areas.”
Wahlquist said all employees, including management, will transfer with the business.
Nolato has been busy expanding its presence in the medical field. Earlier in September, the firm agreed to acquire Grizzly Medical, a medical device assembly, post-processing and quality assurance firm based in Poland.
“Nolato's ambition is always to strive for being a perfect partner to our customers,” Wahlquist said. “These two acquisitions are strengthening our technology platform as well as our geographical footprint in order to serve our customers.”