SWM announces agreement to acquire converters Tekra and Trient
SWM (NYSE: SWM) announced in February the signing of a definitive agreement to acquire Tekra, LLC and Trient, LLC (“Tekra and Trient”), converters of high-performance films and substrates, significantly enhancing the Company’s films capabilities. Tekra and Trient currently operate as divisions of EIS and are based in the Milwaukee, Wisconsin area. The purchase price is $155 million in cash (subject to certain customary closing adjustments) and the transaction is expected to close before March 31, 2020.
Tekra and Trient Highlights
- Deep expertise in technical films converting, bringing new capabilities to SWM’s AMS segment
- Key end-markets include medical, graphics, electronics, and automotive, bolstering several existing SWM market presences, creating access to new customers, and opening opportunities to provide additional solutions to existing customers
- Approximately $100 million of sales with annual growth projected in the 3% - 4% range, EBITDA margin approximately 16%
Strategic Commentary
WM CEO Dr. Jeffrey Kramer, “Tekra and Trient are strategic additions to our AMS growth platform and these businesses complement many of the key attributes that are the foundation of SWM. Tekra and Trient provide critical components for their customers’ end products that meet demanding technical requirements. Much like SWM, their focus is on high-value applications and maintaining close customer relationships that drive market leadership and strong financial performance.”
Carl Sommerstad, General Manager of both Tekra and Trient, commented “The leadership teams at Tekra and Trient are excited to join SWM. With similar cultures, operating strategies, and focus on delivering customer value, we expect a seamless transition and are confident we will see continued growth together.”
