Sulzer Acquires Cosmetics Firm Geka
On July 1, 2016, Sulzer Management Ltd, Winterthur, Switzerland, signed a binding agreement to acquire Geka GmbH, headquartered in Bechhofen, Germany. The transaction creates a leader in proprietary B2B mixing and applicator solutions. The enterprise value is EUR 260 million (CHF 282 million).
With this transaction, Sulzer is doubling the size of Sulzer Mixpac Systems (SMS), its high precision plastic injection molding business, which develops proprietary B2B mixing and applicator solutions for the dental and industrial adhesives markets. Through the acquisition of Geka, SMS - a business unit of Sulzer’s Chemtech division - gains critical industrial mass and segment and geographical diversification. Both businesses share the same industrial core in high-precision plastic injection molding, which allows for significant cost synergies. Geka and SMS have complementary geographic manufacturing footprints, which will enable the combined business to compete globally as a leading solution provider.
Through this acquisition, SMS adds Geka’s leading position in the cosmetics segment to its current leadership in the dental and industrial adhesive segments. This extends its attractive, low-cyclicality portfolio of B2B end-market segments for high-precision plastic injection molding applications. Furthermore, SMS will combine its own healthcare business with Geka’s emerging healthcare business. Geka’s product range further strengthens SMS’s position as a technology leader for mixing and applicator solutions. It perfectly supplements the SMS expertise of applying liquids in a controlled way onto small surfaces.
Geka, under the ownership of the investment company 3i, has become a leading manufacturer of applicator devices for the cosmetics industry with an emerging business in healthcare. The company focuses on B2B customers. Geka is expected to achieve revenues of around EUR 150 million and an EBITDA of around EUR 27 million in 2016. The company has approximately 900 employees and has two manufacturing locations in Germany, one in the USA, and one in Brazil.
Sulzer Mixpac AG
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