Ringmetall acquires further clamping ring manufacturer in the USA
– Additional sales contribution of around USD 6 million
– EBITDA margin with considerable potential for increase through synergies and efficiency measures
– Attractive purchase price in the range of the historical average
Munich, 7. January 2020 – Ringmetall SE (ISIN: DE0006001902), a leading international specialist supplier in the packaging industry, has acquired another clamping ring producer in the USA, Sorini Ring Manufacturing Inc., in the course of an asset deal. Ringmetall has already successfully completed a transaction in this region in 2015 with the acquisition of Self Industries and integrated it into the Group.
Based in Chicago, Sorini has 37 employees and annual sales of around USD 6 million. The earnings contribution before interest, taxes, depreciation and amortization (EBITDA) is currently still below average compared to the Ringmetall Group. At the same time, however, production has considerable potential for leveraging synergies and implementing efficiency enhancement measures. “By means of measures that can be implemented at short notice, we will be able to raise the margin situation at the new location in Chicago to group level”, explains Christoph Petri, CEO of Ringmetall SE.
With the acquisition of Sorini, the Ringmetall Group will gain access to new customers in the drum reconditioning market in the USA. The parties involved have agreed not to disclose the purchase price. However, following the implementation of initial measures to increase margins, the purchase price will be at the target level communicated by the company. The business activities of Sorini were acquired effective January 1, 2020 and fully integrated into the US subsidiary Self Industries. The transaction costs total around EUR 50 thousand and will still be recognized in the income statement of 2019. The acquisition is being financed from the Group’s cash and cash equivalents.
Further information on Ringmetall SE and its affiliated subsidiaries is available on the company’s website at www.ringmetall.de.