March 14, 2006
Polimoon has signed an agreement to acquire Vendée Plastique in France. The company is an established developer and manufacturer of components to the automotive business in France.
Vendée Plastique has been looking for an opportunity to join a more global component manufacturer in order to continue growing. By joining a larger group such as Polimoon, Vendée Plastique can more aggressively pursue growth. This is due to customer's hesitance in placing too much business with a small company.
Vendée Plastique employs approximately 180 people. The business has annual sales of approximately 25 million Euro with an acceptable profit level. The business is being sold from the Macrez family who bought the company in 1992. They have grown the business from a 2.2 million Euro sales initially to a 25 million Euro business in 2005. The company has shifted from being a diversified component supplier to having a focus on the automotive industry. The company is developing components on behalf of its customer and has close cooperation with a partner to jointly develop and industrialise products in addition to manufacturing. The company has a particular knowledge in seat frames and interior components.
Vendée Plastique's largest customer is Faurecia, which is one of France's leading suppliers to the automotive industry in addition to being one of the largest automotive suppliers worldwide. By joining Polimoon, Vendée Plastique will be able to commit to more development projects with its customers and Polimoon will indirectly gain improved access to the French automotive industry.
The business is well located in the West of France with good proximity to its customers. The previous owners in Vendée Plastique will continue as management in the business and play a leading role in integrating the business in to Polimoon and vice versa.
“Vendée Plastique is a good match for Polimoon. The new company will benefit from the Polimoon network and size. Polimoon will particularly benefit from the company's customer base and technical know how in interior components. Together with Polimoon other component businesses and the recent acquisition in the Czech Republic it means Polimoon is in an improved position to serve the European automotive industry”, says Ae Vraalsen, President and CEO Polimoon.
The price paid for the business is approximately 11.5 million Euro including debt assumed. Five hundred thousand Euro of the price is paid in Polimoon shares, which the sellers have committed to retain for a minimum of twelve months.
The acquisition is expected to be effective 31st March 2006. The Company will continue to trade under the name Polimoon Vendée.
CANEC Inteational initiated and facilitated the transaction, acting as financial advisor to Vendée Plastique.