Swedish injection molder Nolato AB has expanded its geographic base in Western Europe by acquiring Cope Allman Jaycare Ltd. of Portsmouth, England.
The Torekov, Sweden-based company has been expanding aggressively in the past few years, with new plants in China and Hungary and an acquisition in the United States.
Nolato is paying 179 million Swedish kronor ($26.38 million) for Cope Allman Jaycare, plus deferred consideration based on the business's performance through the first quarter of 2014.
The deal boosts the Nolato Medical business unit, Nolato announced April 11.
Cope Allman Jaycare makes plastic pharmaceutical packaging and has annual sales of about SKr 270 million ($39.8 million). It is being consolidated into Nolato Medical as of April 1. Nolato said the purchased company sells to major international pharmaceutical companies.
“Following the acquisition of the U.S. company Contour Plastics, we have worked to add an acquisition in Western Europe,” stated Nolato President and CEO Hans Porat in a news release. “Cope Allman Jaycare is a well-managed company, and is a good fit for our growth strategy.”
Nolato bought Contour Plastics Inc. of Baldwin, Wis., in 2010. It introduced liquid silicone molding to Baldwin in 2011. Nolato made the acquisition to boost its medical market stake and give it manufacturing in North America.
Nolato expanded again in medical molding later in 2011 when it added capacity at its Mosonmagyaróvár, Hungary, operation. At about that time its industrial division also launched a manufacturing facility in Prahova district of southern Romania to mold products for the hygiene market.
Nolato put in a medical facility in China in 2009.
Cope Allman Jaycare was established in 1958. It employs 270 at operations in Portsmouth and in Newcastle, England. Nolato bought the business from Cope Allman Jaycare management, who will remain with the business.
“Nolato already has a strong position in the Scandinavian pharmaceutical packaging market,” Christer Wahlquist, Nolato Medical president, said in a news release. “This acquisition gives us a local presence in the U.K., which is an important part of the global pharmaceutical industry. It also opens doors with a large number of leading international pharmaceutical companies which are existing customers of Cope Allman Jaycare.”
Cope Allman Jaycare makes a range of containers, closures and devices for pharmaceutical, medical and other industries such as cosmetics.
Nolato Group sales in the fourth quarter of 2011 were SKr 734 million ($108.2 million), of which medical accounted for SKr 230 million ($33.9 million). Its telecom unit logged SKr 207 million ($30.5 million) in sales while the industrial segment recorded sales of SKr 299 million ($44 million).
After the Cope Allman Jaycare purchase, Nolato's equity to assets ratio is about 47 percent. Nolato trades on the Nasdaq OMX Nordic Exchange.