Swedish injection molder Nolato AB has made a big move for growth in the U.S., buying Vermont-based medical supplier GW Plastics Inc., bringing it both plastics and LSR molding operations.
The deal for 2 billion Swedish krona ($224.8 million) "provides significant volumes and a strong position in North America" for Nolato Medical Solutions, the company's medical business unit, the company said in an Aug. 6 news release.
"It supports relationships with existing customers, while also creating additional opportunities for growth and expanding our customer base," Nolato President and CEO Christer Wahlquist said in the release.
With the company's existing production in Asia and Europe, the company now has a "solid global position," the company said.
GW Plastics was the Processor of the Year for Plastics News in 2009. It was No. 53 in the most recent Plastics News ranking of injection molders in North America with six plants, 1,100 employees and $178 million in sales in 2019.
GW opened in 1955 and expanded into liquid silicone rubber production in 2008.
Most of GW's operations, a little more than four-fifths, will report to Nolato's medical business unit, with the rest becoming part of its Industrial Solutions operations.
Prior to the acquisition, Nolato, based in Torkov, Sweden, had only one U.S. plant, Nolato Contour in Baldwin, Wis. It ranked No. 141 for North American injection molders in PN's most recent ranking, with an estimated $46 million in sales.
"GW Plastics is a well-managed, well-invested company that is a great fit with our corporate culture. The business, which has historically demonstrated healthy organic growth, has extensive know-how in engineering and technology. Together with its size and geographic presence, this provides an ideal strategic combination with Nolato and enables significant market synergies over time," Wahlquist said.
The deal is expected to be completed in September.
GW was also the 2015 winner of the Plastics News Sustained Excellence award, which honors continued growth and achievement and is given only to past Processor of the Year winners.