BEWI will acquire Baltic insulation company

Processing salmon at a SalMar facility. Photo: BEWI.
Processing salmon at a SalMar facility. Photo: BEWI.

BEWI, Norwegian company leading provider of packaging, components, and insulation solutions, has announced that they have entered a letter of intent to acquire 100 percent of a Baltic insulation company.

Through this acquisition, the Frøya company will expand their geographic footprint into the Baltics, "a region we find very interesting both in terms of sales growth, and for establishing a platform for our circular activities", says Christian Bekken, CEO of BEWI.

Photo: BEWI.

The Baltic company, focus on insulation solutions, has recorded profitable growth recent years, with net sales in the range of EUR 25 to 30 million and solid EBITDA margins in the range of 10 to 15 percent. Bekken is optimistic about the deal: "We expect to see continued growth in demand for insulation solutions across the markets we operate in, driven by favourable regulations requiring improved energy efficiency, as well as growth in residential construction and renovation".

Acquisition closing is expected in the second quarter of 2022, as it is conditional upon a signed sale and purchase agreement, as well as customary conditions. The total consideration is expected to be in line with BEWI's historical M&As. That means an EV/ EBITDA multiple in the range of 5 to 7, whereas 50 percent will be settled in cash and 50 percent through issuance of consideration shares in BEWI.

Founded in 1980 on the island of Frøya, off the coast of central Norway, BEWI provides packaging, components and insulation solutions in an innovative and efficient way. From the production of raw materials and end goods to the recycling of used products, their commitment to sustainability is integrated throughout the value chain.

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