Swedish injection molder Nolato AB has announced that it is acquiring Treff AG, a Swiss manufacturer of products for medical and self-care diagnostics. The companies, which have a business relationship that goes back five years,  have said that the transaction will be completed during the first week of October, when Treff will be consolidated into the Group. The new company will operate under the name Nolato Treff.

Acquisitions are an important aspect of Nolato’s growth strategy. Just weeks ago, at the beginning of September, Nolato acquired Poland-based Grizzly Medical, which is involved in the assembly, post-processing and quality assurance of medical device components and systems. The present acquisition is expected to strengthen the customer base and geographical expansion of Nolato Medical and Nolato Industrial, two of the three business areas in which the Group is active. In recent years, the Group has made numerous strategic investments in Nolato Medical in “quality companies in Central Europe that complement Nolato with a high level of technical expertise”, said company representatives. The group is also seeking a broader geographical spread in Central Europe for Nolato Industrial.

“This acquisition gives us a presence in the German-speaking part of Europe. It will open doors to a large group of new and internationally leading customers, particularly within medical technology, several of which are existing customers of Treff,” said Nolato President and CEO Christer Wahlquist.

Family owned since its establishment in 1946, Treff employs approximately 190 people at its plant in Degersheim, in the canton of St. Gallen, Switzerland. Wahlquist also said there will be no restructuring; the current management will remain with the company.

“Treff is a well-managed and well-invested company that will fit well with our corporate culture,” Wahlquist emphasized.

The company’s sales for 2016 are estimated at just over SEK 450 million, with an EBITDA margin of around 11.5%. The transaction is expected to have a marginal positive effect on Nolato’s earnings per share for the current year. Around two thirds of Treff’s operations will be reported within Nolato Industrial in future, and one third within Nolato Medical.   

The acquisition will be financed using existing credit agreements.