Swiss companies Rehau Verwaltungszentrale AG and MB Barter & Trading AG (MBT) have signed an agreement for a merger of equals to create a polymer group with potential sales of $2.5 billion.
The transaction, announced Sept. 13, includes Rehau GmbH in Muri bei Bern, Switzerland, as well as the worldwide subsidiaries of the MBT Group. The deal is expected to close in the second half of 2018, subject to customary closing conditions and approval of antitrust authorities.
The name of the company will be announced in the future.
Within the new structure, the board of directors of the new company will consist of Jobst Wagner, current president of the board of directors at Rehau, and Thomas Endres, current president of the board of directors at MBT. The executive committee will be led by Stefan Girschik as CEO, while Philipp Endres of MBT will act as deputy CEO and Marco Zahnd as chief financial officer.
While Rehau is experienced in materials, processes and applications, Kilchberg, Switzerland-based MBT specialized in commodities trading and procurement of standard polymers, PET and rubber. MBT has also adopted a vertical diversification strategy in recent years, with investments in downstream production lines.
The family-owned enterprise has two companies in Germany — MBT PolyTapes GmbH and Re-Pack Folien GmbH — for the production of protective film. According to news reports, the two businesses are not included in the deal.
Rehau, on the other hand, is active in supplying to automotive industry as well as construction and other industrial sectors.
In a statement, Rehau said the vertical integration would combine the expertise of the two companies, strengthening their global position.
The new business, Rehau said, will offer "competitive prices as well as efficient and optimised trading and distribution services."
In addition, the two companies expect the merger to present “significant opportunities for digitalization, recycling solutions and global expansion.”
“Joining forces allows the new company to respond more quickly to changing market conditions, innovate faster, become more efficient and create higher value for not only the customers, but also for employees and stakeholders alike,” Girschik said.
