TOREKOV, Sweden--(BUSINESS WIRE)--Regulatory News:
Nolato has entered into an agreement to acquire Poland-based Grizzly Medical, which is involved in the assembly, post-processing and quality assurance of medical device components and systems. The company, which has annual sales of around SEK 25 million and 90 employees, has been a supplier to and partner of Nolato Medical since the 1990s.
“This is a relatively small but strategically important acquisition that boosts our capacity in the low-volume, clean room-based production segment, including assembly and post-processing, giving us an even more comprehensive customer offering. We are seeing growing demand for complex products and systems that require manual or semi-automated processing, and we believe this company will be an important part of Nolato’s future growth strategy,” said Nolato President and CEO Christer Wahlquist.
Grizzly Medical was founded in 1996 and is estimated to have sales of around SEK 25 million for 2016, with good profitability. The company has 90 employees at its plant in Stargard in north-west Poland and the majority of its production takes place in a clean room environment. The purchase price is SEK 14 million and the business will be consolidated into Nolato from 1 September. The company will operate under the name Nolato Stargard and will be led by the current management.
“Acquisitions are a natural part of Nolato’s growth strategy and we are continually working to acquire additional operations that both fit our growth strategy and strengthen our overall customer offering. Nolato has a healthy financial position, which provides considerable flexibility to make significant acquisitions if there is an opportunity to increase shareholder value in both the short and long term,” said Nolato President and CEO Christer Wahlquist.
Nolato is a Swedish group with operations in Europe, Asia and North America. We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, telecom, automotive, hygiene and other selected industrial sectors. Nolato’s shares are listed on Nasdaq Stockholm in the Mid Cap segment, where they are included in the Industrials sector.
This information is information that Nolato AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 8.30 am CET on 2 September, 2016.
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