GW Plastics operates seven manufacturing plants located in the US, Mexico, China and Ireland
GW Plastics serves pharmaceutical, healthcare and automotive industries. (Credit: Bruno /Germany from Pixabay)
Sweden-based Nolato has agreed to acquire GW Plastics, a US-based injection-moulded thermoplastic and silicone solutions provider, in a deal worth approximately SEK2bn ($230.1m).
Established in 1955, GW Plastics operates seven manufacturing plants in the US, Mexico, China and Ireland, with annual sales of approximately SEK1.8bn ($207.1m).
With nearly 1,100 employees, the company serves pharmaceutical, healthcare and automotive industries. Its products are used in medical devices, vehicle systems among others.
Acquisition to provide additional growth opportunities for Nolato
Nolato expects the acquisition to provide significant volumes as well as strengthen position for its Medical Solutions business in North America, with additional growth opportunities.
Nolato president and CEO Christer Wahlquist said: “Acquisitions are and have long been, an important part of our growth strategy, and we are continually looking to generate shareholder value by identifying high-quality companies that will strategically enhance Nolato’s existing business.
“We have been interested in GW Plastics for some time, and it’s really pleasing to be completing this deal.
“This acquisition provides us with significant volumes and a strong position on the key North American continent. It supports relationships with existing customers, while also creating additional opportunities for growth and expanding our customer base.”
Upon completion of the deal, over four-fifths of GW Plastics business is planned to be operated under the Medical Solutions business area while the remainder will be reported under Industrial Solutions.
Wahlquist added: “GW Plastics is a well-managed, well-invested company that is a great fit with our corporate culture.
“Together with its size and geographic presence, this provides an ideal strategic combination with Nolato and enables significant market synergies over time.”
Subject to US regulatory approvals, the deal is scheduled for completion in September 2020.
Last year, GW Plastics announced its plan to expand its manufacturing operations at its Irish facility to better serve customers in the medical device and drug delivery industry.