Acquisition in FoamPartner business unit
Conzzeta acquires Otto Bock Kunststoff
Zurich, July 21, 2017 - Conzzeta announces the signing of a binding agreement for full acquisition of Otto Bock Kunststoff. Completion of the deal is expected in the second half of 2017, subject to regulatory approval.
Otto Bock Kunststoff, domiciled in Duderstadt, Lower Saxony (Germany), generated net revenue of around EUR 130 million in 2016 with a profitability that was above-average for Conzzeta. The number of employees at the end of 2016 was around 430 worldwide. The parties have agreed not to reveal the purchase price.
The high-quality foam materials, components and systems produced by Otto Bock are a good fit with Conzzeta's foam materials solutions in its FoamPartner business unit. The deal includes the takeover of all the shares in the joint venture between Otto Bock and FoamPartner, which the two companies have run on a 50-50 basis in China since 2005.
The business being acquired mainly comprises foams used in the automotive industry as interior linings for vehicles. The agreement will enable FoamPartner to improve its access to the market for its own specialties in the Mobility growth segment and become a global leader in polyurethane-based foam materials for modern mobility solutions. These are used for example in the car, truck and aviation industries for applications such as noise and thermal insulation, seals, damping and padding. Wide-ranging technical know-how is available for developing customized foam materials with special properties such as fire-retardant ultralight applications for energy-efficient vehicles. In the Living & Care market segment the portfolio of materials and products for business customers will also be extended. The restructuring of the existing joint venture in China will create the conditions to leverage the strong position there for further growth.
The production sites to be taken over in Duderstadt (Germany), Rochester Hills (MI, USA) and Changzhou (China) complement the existing FoamPartner production sites and broaden the company's footprint in the designated growth regions. The economies of scale resulting from the agreement will allow increased focus of sales and generate synergies in procurement and, selectively, in the integration of the respective organizations.
Michael Willome, Conzzeta Group CEO, comments: "For the Conzzeta Group, the deal is another significant step in the internationalization of its activities and expansion of its presence in Asia and North America, opening up further growth opportunities. The largely complementary product portfolio of Otto Bock will almost double the FoamPartner revenues, resulting in a substantial strengthening of our market position."
Prof. Hans Georg Näder, Chairman and CEO of Otto Bock Holding & Co. KG, comments: "For the strategic development of our group of companies, we considered only premium partners who know the plastics business and are committed to sustainable growth - and who would therefore further develop the Duderstadt location. We are happy to have found the ideal partner in Conzzeta, a group with a long-term perspective, and are convinced that teaming up with FoamPartner is in the best interests of our employees."
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Conzzeta is a broadly diversified Swiss holding company. It stands for innovation, reliability and a long-term perspective. Conzzeta strives to achieve leading positions in its target markets, with above-average growth and long-term value creation. Over 4000 employees at more than 60 locations worldwide are dedicated to offering customers innovative solutions in Sheet Metal Processing, Sporting Goods, Foam Materials, Graphic Coatings and Glass Processing. Conzzeta is listed on the SIX Swiss Exchange (SIX:CON).