The Semperit Group announced today that it will acquire 100% of Rico Group GmbH, an Austria-based supplier of silicone injection moulds and manufacturer of liquid silicone components. The acquisition agreement was signed today in Upper Austria.
Semperit, a company with a corporate history stretching back almost 200 years, develops and produces polymer products for the industrial and medical sectors. The acquisition of Rico represents a strategic expansion in terms of product portfolio, processing technologies, automation and materials, according to CEO Karl Haider.
“With Rico’s engineering know-how, new and attractive markets will be increasingly developed, and growth created,” he said.
The purchase price is based on the assumption of a recurring EBITDA of around 16.5 million euros for the existing business, with a multiple of 12, according to a Semperit news release. That would translate to 198 million euros, or $216.4 million at the current exchange rate. The final price is subject to a customer price adjustment mechanism on the closing of the purchase.The deal is expected to close in the third quarter 2023.
The acquisition provides Semperit with access to a source of excellent quality tools for high-precision and complex solutions as well as expertise in the automation of production steps for large volume manufacturing. Founded 29 years ago in Thalheim near Wels, Rico specialises in highly complex, precise, customised overall solutions in high volumes. In addition, Semperit will be able to strengthen its market presence in North America, where Rico has had its own production facilities for many years. The group currently employs around 500 people at five locations: three in Austria, one in Switzerland and one in the USA.
Semperit will continue along the path set out by Rico, the company said in a release, which includes carrying on with the ongoing construction work to expand the Rico plant at Thalheim, and the planned expansion in the USA and Switzerland.
Alfred Griesbaum, one of the three owners and founders of Rico Group, comments on the sale: “Semperit is our guarantee for continuity and growth, because Semperit is a company that understands our business, appreciates our Upper Austrian roots and can make three out of one plus one. With this promising perspective, handing over to Semperit was easy for us as founders.”
Headquartered in Vienna, the Semperit Group employs around 6,500 people worldwide. The Group has 16 manufacturing facilities worldwide and numerous sales offices in Europe, Asia, Australia, and America.
The market for silicone applications in Western Europe and the US was worth approximately €3 billion in 2022.The market for silicone is projected to show an annual growth of around 7% until 2027.