Semperit to buy Rico Group, maker of LSR parts, silicone molds

Semperit Group plans to purchase fellow Austrian firm Rico Group GmbH, a maker of liquid silicone rubber components and silicone injection molds.

"Rico is a very attractive company and represents a strategic expansion in terms of product portfolio, processing technologies, automation and materials," Semperit CEO Karl Haider said in a statement. "With Rico's engineering know-how, new and attractive markets will be increasingly developed, and growth created."

Under terms of the deal signed April 17 in Austria, the purchase price is based on the assumption of a recurring EBITDA of around 16.5 million euros for the existing business, with a multiple of 12, according to a Semperit news release. That would translate to 198 million euros, or $216.4 million at the current exchange rate.

The final price is subject to a customer price adjustment mechanism on the closing of the purchase, Semperit said.

The investment payments for the plant expansion currently under construction in Thalheim, Austria, also will be built into the final purchase price. Rico Group broke ground June 15, 2022, on the first phase of the project and expects the new building to be occupied sometime this year.

The deal is subject to regulatory approvals and is expected to close in the third quarter of 2023.

Semperit said the long-term potential comes with the high-quality toolmaking for high-precision and complex solutions, along with the opportunity to automate production steps in the manufacturing of large-run products. It added that the purchase will strengthen its market access in North America, where Rico has production facilities for its Simtec Silicone Parts LLC business, which is based in Miramar, Fla.

Rico was founded 29 years ago in Thalheim and offers highly complex, precise custom solutions in high volumes. The group consists of five companies, three in Austria and one each in the U.S. and Switzerland. It employs about 500 and posts annual sales of close to $100 million.

Rico serves industrial customers in the health care and life science, household and sanitation, electrification and mobility sectors.

"Semperit is our guarantee for continuity and growth, because Semperit is a company that understands our business, appreciates our Upper Austrian roots and can make three out of one plus one," Alfred Griesbaum, one of the three owners and founders of Rico Group, said in a statement. "With this promising perspective, handing over to Semperit was easy for us as founders."

Semperit said Rico Group will maintain independence in operational areas and, after the acquisition is completed, Semperit will support the corporate functions.

Semperit said it will finance the transaction by the liquidity status of the company and by its newly negotiated bank financing. The publicly held firm said that given this pending purchase, the Executive Board of Semperit will submit a proposal at its Annual General Meeting on April 25, that the company issue a conditional additional dividend of 3 euros a share in addition to the basic dividend of 1.50 euros a share for 2022 performance.