GERMANY – Surteco SE, one of the world’s leading manufacturers of decorative surface materials and producer of technical extrusions based on plastics, on June 24th informed the market that is acquiring all shares, in Global Abbasi S.L. in Spain, the ultimate parent company of the Probos Group. 

This transaction involves the Surteco subsidiary company Döllken-Kunststoffverarbeitung GmbH in acquiring 100% of the shares in Global Abassi S.L. A sale and purchase agreement was entered into on June 24 and the acquisition is to be completed within the next weeks since an approval by merger control authorities is not required. The purchase price (Enterprise Value) amounts to EUR 99 million cash free/debt free and Surteco is financing the transaction by borrowed funds.

Similar to Surteco’s subsidiary Döllken-Kunststoffverarbeitung GmbH and its domestic and foreign production sites, the Probos Group has specialized in the production and sales of edgebandings based on plastic. In 2016, the company generated sales of EUR 66.5 million with approximately 470 employees and earnings before financial result, income tax, amortization and depreciation (EBITDA) of around EUR 11 million (EBITDA margin: 16.6 %) according to Portuguese GAAP. It comprises the production companies Probos Plásticos S.A. in Portugal and Proadec Ltda. in Brazil, as well as the sales companies Edging Plus Inc. in the United States, Proadec UK Ltd. in the United Kingdom, Proadec Deutschland GmbH in Germany and Chapacinta S.A. de C.V. in Mexico.

By this takeover, the Surteco Group (2016: sales of EUR 639.8 million; EBITDA of EUR 74.3 million; EBIT of EUR 40.9 million; approximately 2,800 employees) intends to increase its product competence in the area of plastic based edgebandings and to expand the geographic sales areas. Up to date, Surteco has not yet been present with own production sites in Brazil and on the Iberian Peninsula.

“The acquisition of Probos constitutes a further milestone for us. The company is highly profitable with a record of strong growth. Probos has an established market presence in South and Central America and opens up great potential in markets where we have hardly been represented up to now,” commented Dr. Herbert Müller, Chairman of the Board of Management of Surteco SE, on the acquisition.