Back IZOBLOK and BEWI sign the contract.
IZOBLOK and BEWI wish to jointly develop cooperation with the automotive industry, thus responding to new needs arising from the transformation of the industry and the significant acceleration of global projects.
IZOBLOK S.A., leader in the production of EPP components for the automotive industry, and BEWI, European leader in EPS and EPP-based packaging, components and thermal insulation solutions, have announced today the signing of an agreement for the indirect acquisition by BEWI of a majority stake of IZOBLOK S.A.
“We are pleased to announce this acquisition, once again confirming our strategy of consolidation in a market that is showing significant growth. With this acquisition we strengthen our market position in the automotive industry. IZOBLOK is a reliable company with a strong position in the production of EPP components for this industry in Europe. Together we will become a leading component supplier to an industry that we expect to continue to grow after the pandemic.” – says Christian Bekken, CEO of BEWI.
BEWI ASA has entered into a preliminary agreement to indirectly acquire 54.21 % of the shares in IZOBLOK, representing 65.66 % of the voting rights at the general meeting. The completion of the agreement is subject to the fulfilment of standard conditions for such transactions. The agreement is expected to be finalised in the second quarter of 2021.
BEWI ASA is listed on the Oslo Stock Exchange, has an annual turnover of EUR 460 million, its sales of EPP components for the automotive industry do not exceed 5% of revenues. The company has EPP component production facilities in Sweden and Portugal. The main markets for sales are: Sweden, Spain, Germany, Portugal, as well as several other European countries.
IZOBLOK has a market share of approximately 20% in EPP components for the automotive industry in Europe and is the market leader. IZOBLOK has a well-diversified and growing portfolio of customers such as Volkswagen Group, Jaguar Land Rover, BMW, Hyundai and Ford. The company has a strategic geographical location with a well-developed technical infrastructure. The partnership with BEWI will give the company access to markets in northern and southern Europe. As a result, it will also provide good access to customers throughout Europe. The company has 4 production plants and is planning further growth, including through acquisitions.
“IZOBLOK, like us, is an integral supplier, producing both raw materials and finished products. We believe that the two companies are a good strategic fit and see great potential for synergies related to our automotive business.” – Bekken continues.
The current IZOBLOK management team, including CEO Przemysław Skrzydlak, will remain in charge of the company. Upon completion of the transaction, he will also become a shareholder of BEWI. BEWI does not intend to be a passive investor in IZOBLOK.
“EPP components are commonly used in the production of automobiles. Besides shock-absorbers, they can reduce noise, improve acoustics and replace other components to reduce vehicle weight. This means they help consume less energy, which reduces emissions and increases the range of electric cars” – says Bekken.
“The collaboration between the two companies will open up new cooperation opportunities for our customers, provide employees with more development possibilities and accelerate our technological growth which will guarantee success in the market” – says Przemysław Skrzydlak.
Transaction advisors of the sellers were: Olesiński and Wspólnicy (legal advisor), Chabasiewicz, Kowalska and Partners (legal advisor), PwC (leading transaction advisor).
Transaction advisors of the buyers were: DLA Piper (legal advisory), SpareBank 1 Markets AS (financial advisory).
