BEWI announces acquisition of the Lithuanian insulation company BalPol01-07-2022
BEWI announces acquisition of the Lithuanian insulation company BalPol
With reference to the stock exchange notice of 18 February 2022, where BEWI announced that it had entered a letter of intent to acquire 100 per cent of a Baltic insulation company, the company today announces that it has signed an agreement to acquire the Lithuanian insulation company UAB Baltijos Polistirenas (“BalPol”). BalPol is the market leader in Lithuania for insulation solutions from expanded polystyrene (EPS) and PIR, and for EPS packaging solutions.
BalPol, which was established in 2002, has approximately 150 employees and currently operates two downstream facilities, whereas one facility produces PIR and MW sandwich panels and PIR insulation boards, while the other produces insulation solutions from EPS for construction and packaging products from EPS and EPE.
“By acquiring BalPol, we expand our geographic presence, establishing a leading position in Lithuania and a platform for further growth in the Baltics. At the same time, we are broadening our insulation offering as we now also will have production of PIR and MW sandwich panels and PIR insulation bords,” says Christian Bekken, CEO of BEWI.
BalPol demonstrated solid growth and improved profitability in 2021, recording revenues of approximately EUR 31.0 million and an EBITDA of approximately EUR 4.3 million. The increase is mainly explained by favourable market conditions, a broadened product range, including increase in sales prices.
The agreed consideration is in line with BEWI’s historical M&As, i.e., with an EV/ EBITDA multiple in the range of 5 to 7, whereas 50 per cent will be settled in cash and 50 per cent through issuance of consideration shares in BEWI ASA, as communicated in BEWI’s stock exchange notice from February.
“The acquisition is in line with our current communicated M&A priorities. We believe in the fundamentals for insulation solutions, where improved energy efficiency is crucial going forward, both due to high energy prices and to reduce the environmental impact of heating and ventilation of buildings,” Bekken continues.
“BalPol has a strong management team that we look forward to working with. We share the same vision for the value our products bring to the society and for the responsibility to create circular value chains going forward. Through this acquisition, we also get an important platform for our circular activities in the Baltics,” Bekken concludes.
Closing of the acquisition is conditional upon customary conditions and is expected in the third quarter of 2022.
Charlotte Knudsen, Director of IR and Communications BEWI ASA, tel: +47 9756 1959
About BEWI ASA
BEWI is an international provider of packaging, components, and insulation solutions. The company’s commitment to sustainability is integrated throughout the value chain, from production of raw materials and end goods, to recycling of used products. With a vision to protect people and goods for a better every day, BEWI is leading the change towards a circular economy.
BEWI ASA is listed at the Oslo Børs under ticker BEWI.
The information is such that BEWI ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11:20 CEST on 1 July 2022.