Semperit AG Holding has seen the growth of the silicone market in Western Europe and the U.S., and in response made one of the year's biggest acquisitions in the LSR space with the purchase of fellow Austrian firm Rico Group GmbH.
Semperit closed on the $216.4 million acquisition July 31.
"The acquisition of Rico is another important step in implementing our growth strategy with a focus on global leadership, innovation and technology," Semperit CEO Karl Haider told Rubber News in August. "Semperit thus achieves technology leadership in liquid silicone and high-end mold production and strengthens its industrial core business."
The acquisition fits perfectly, Haider said, with Semperit's new, streamlined industrial rubber goods-only philosophy.
Rico serves industrial customers in the health care and life science, household and sanitation, electrification and mobility sectors.
The company was founded 29 years ago in Thalheim, Austria, and offers highly complex, precise custom solutions in high volumes. The group consists of five companies, with three in Austria and one each in the U.S. and Switzerland.
With about 500 employees and annual sales of about $100 million, Rico brings to Semperit "global technology leadership" in LSR.
Semperit plans to leverage Rico for its core industrial business, especially as it relates to increasing its share of the North American market.
Rico, which offers a full spectrum of services from prototyping to mold-making and high-volume production runs, also plans expansions at the U.S. and Swiss sites, Semperit said.
According to Semperit, the market for silicone products in Western Europe and the U.S. is expected to grow "significantly" by around 7 percent annually through 2027.
Currently, the silicone market in those regions sits at about $8 billion.
Globally, the silicone market was estimated at about $18.5 billion in 2022, with 2027 projections at about $27 billion.