EQS-News: Ringmetall SE / Key word(s): Expansion/Takeover
Ringmetall expands into the US market for inliners through acquisition of Protective Lining Corporation
Munich, 9 January 2023 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialty supplier in the packaging industry, has successfully acquired a leading manufacturer of polyethylene inliners in the USA, thus accelerating its international expansion in the inliner product area.
In the course of an asset deal, the business operations of Protective Lining Corporation, based in New York, NY (USA), were acquired as of 6 January 2023. The immediate sales growth expected from the transaction in fiscal year 2023 amounts to a good USD 12 million with an EBITDA margin that is currently still slightly below average. Nevertheless, Protective Lining has an optimal market positioning to further advance the expansion of the Ringmetall Group on the North American market. Since the 2015 and 2020 acquisitions of Self Industries Inc. and Sorini Ring Manufacturing Inc, Ringmetall has already been the leading manufacturer of drum closure systems in North America and, with the now completed acquisition of Protective Lining, is also accelerating the consolidation of the US market for drum liners. With a total of around 50 employees, the company mainly produces round-bottom and block-bottom bags for various customer industries on the basis of self-extruded polyethylene films.
"The opportunity for this acquisition arose against the background of an unresolved succession situation," confirms Christoph Petri, Spokesman of the Management Board of Ringmetall SE. "Protective Lining has the ideal company size and market positioning for us to be able to grow quickly and profitably into the market for inliners in the USA via the acquisition and to drive the further consolidation of the market."
As part of the acquisition, the company will be integrated into the US subsidiary Berger Group US and assigned to the Liners business unit. The purchase price amounts to a mid-single-digit million euro sum and will be paid entirely from the company's existing liquidy. In addition, Ringmetall plans to invest around EUR 2 million in the modernization and expansion of production in the current and coming fiscal year.
"Being able to close the 2022 financial year with such an incisive deal on the M&A side shows us that even a market environment that appears adverse at first glance holds many opportunities for us," says Board Member Christoph Petri delighted. "Even if we continue to face headwinds in many areas in 2023, the general crisis also always opens up opportunities for our company, which we know how to exploit."
For more information on the Ringmetall Group and its affiliated subsidiaries, please visit www.ringmetall.de.
About Ringmetall Group
Ringmetall is a leading international specialty supplier in the packaging industry. The Industrial Packaging business unit offers high-security closure systems and inner sleeves for industrial drums for the chemical, petrochemical, pharmaceutical, and food processing industries. The Industrial Handling Business Unit develops application-optimized vehicle attachments for handling and transporting packaging units. In addition to the Group headquarters in Munich, Ringmetall is represented by worldwide production and sales subsidiaries in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands as well as China and the USA. Worldwide, Ringmetall generates sales of around 190 million euros per year.
09.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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