Umeco announces Italian acquisition
Article Date: Dec 04 2008A Warwickshire-based composite materials provider to Boeing, BAE Systems and the McLaren Formula 1 team is to enhance its operations in the wind energy market after buying one of its suppliers in Italy.
Umeco Plc, which also provides distribution services, has bought Industria Plastica Monregalese (IPM), a manufacturer of vacuum bagging films used in making wind turbine blades.
Umeco has agreed to pay IPM’s private shareholders €16.8 million (£14.5 million) for the business. On completion €12.8 million was paid from its existing resources, with the balance deferred until certain conditions are met. Under the terms of the deal, Umeco assumes the target company’s €13 million debt.
This is the latest step in the group’s plan to grow its composites operations and is the third acquisition in this strategy following the combined £33 million it has spent on JD Lincoln and Primco during the past two years.
Umeco chief executive Clive Snowdon said the acquisition is a key part of the group’s plan to develop its business in the wind energy market.
“Using IPM’s vacuum bagging film, we have captured a significant share of this market,” he added. “However, wind energy currently accounts for just 6 per cent of group sales and the scope for growth is exciting. Not only does IPM secure a strategically important source of material supply, but it also provides us with the technology to establish a local presence in other key markets.”
Umeco, which is listed on the London Stock Exchange, reported revenues of £335.2 million in the year to April 2008. IPM made EBITDA of €2.4 million on revenues of €24.3 million in the 12 months to January 2008. At the same date its assets were valued at €17.6 million.
