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Polyram, which is controlled by the Pimi Fund, which is managed by Yishai Davidi, acquired the operations of the German MCT for 25 million euros. MCT manufactures and markets polypropylene products and additives and thermoplastic elastomers. The company is located in West Germany and most of its activity is with the European car industry.
Data released by Polyram shows that the German company ended 2021 with revenues of about 27.9 million euros. Upon completion of the transaction, Polyram will continue to operate MCT’s production lines and market its products to its customers, using MCT’s distribution network to sell Polyram products in Germany and other European countries.
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The purchase price will be paid upon completion of the transaction, and it also includes an Earn Out mechanism, whereby sellers will be able to receive an additional consideration of up to € 5 million, contingent on MCT’s business results in 2022 and 2023. Polyram will finance the acquisition from its own sources, after completing a share issue of NIS 97 million last month.
Yuval Peleg, CEO of Polyram: “The acquisition of MCT’s operations is part of the implementation of the company’s business strategy, to grow both organically and through acquisitions that are synergistic with existing operations.
“MCT is a well-established corporation operating for decades in Germany and other European countries, and has long-standing agreements with companies in the automotive and other industries. B, a recycling plant in England and a plant in China. “The acquisition of MCT will allow us to cross-sell, in which we will be able to sell Polyram products through MCT’s distribution network to its customers in Europe, while we add the MCT product basket to the company’s existing portfolio that we offer to our customers.”
Polyram ended the first nine months of 2021 with record revenues of NIS 680 million and a net profit of NIS 86.5 million, an increase of 82% compared to the net profit in the corresponding period in 2020, due to both the significant growth in revenues and an increase in the company’s profitability. . During 2021, the volume of the company’s profits distributed to its shareholders amounted to NIS 70 million.
Along with the acquisition of MCT operations, Polyram is preparing to increase production capacity in line with the growing demand for its products. The company is currently starting the operation of the first dedicated recycling line in Israel, in parallel with the installation of a production line for engineering thermoplastic compounds (EP) products on the company’s website in England.
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