Nuplex Industries (NPX) announced it has entered into a binding agreement to acquire Viverso GmbH, its related operations and product groups from Bayer Material Science (BMS) for €75 million. Viverso manufactures resins used in coatings and putties from its world class, state-of-the-art facility located in Bitterfeld, Germany. A strategic, bolt-on acquisition that will be earnings accretive in this financial year
Nuplex CEO, Emery Severin said: “This is a very attractive opportunity for Nuplex and consistent with our strategy to establish leading market positions through value accretive, bolt-on acquisitions. Being a focused, independent resins business, Viverso’s complementary operations are a natural fit with our own European operations. “The combination of Viverso with Nuplex’s European operations will deliver a number of benefits and will result in Nuplex becoming a top four resins manufacturer in the region. “Viverso further strengthens a number of our leading market positions in Europe, particularly in the industrial coatings markets. It also expands our product range and include; Viverso’s environmentally friendly, solvent free, water resistant resins used in construction coatings; resins for putties used in vehicle refinish; and resins offering unique chemical resistance and high temperature performance. We see opportunities to leverage these new products across our global operations. “We will also enter into a range of contracts from 2 to 10 years in length, to toll manufacture specialty, trademarked products for Bayer.
Under the agreement, Nuplex will pay €75 million for Viverso GmbH, its operations, working capital and additional products also manufactured at Bitterfeld. The price paid is equivalent to 6.5 times annual, pro-forma EBITDA. In FY2012, Viverso is expected to be earnings per share accretive for Nuplex shareholders. Earnings are expected to grow in coming years as synergies are realised. The acquisition will be 100% debt funded. To facilitate the transaction, Nuplex has secured an additional facility of AUD100 million to increase its total debt facilities from AUD200 million to AUD300 million, and is exploring options to convert some of it into long term debt via the US private placement market.
Nuplex Industries Limited is a leading global manufacturer of polymer resins with operations in ten countries on four continents and sells its products in over 80 countries. Polymer resins are essential ingredients in a wide range of products used every day, from basic necessities, through consumer durables to luxury goods. Nuplex also distributes raw materials to a wide cross section of industries in Australia and New Zealand including the chemical, plastics, general industrial, food and pharmaceutical sectors.