Information on the Target
Molstad Modell & Form has been a subcontractor for PartnerPlast for several years. In 2014, the company reported a revenue of approximately 11 million Norwegian kroner and employs nine staff members. The acquisition of Molstad Modell & Form by PartnerPlast is part of the latter’s strategic growth plan.
Tom Samuelsen, the CEO of PartnerPlast, emphasizes that this acquisition will enhance their expertise in mold design and establish a robust environment capable of handling polyurethane casting. The goal is for PartnerPlast to evolve into a strong product developer and manufacturer of polyurethane (PUR) products.
Industry Overview in Norway
The Norwegian manufacturing sector has shown considerable resilience and adaptability, particularly in specialized industries such as plastics and polymers. With a significant portion of the industry focused on serving the offshore and seismic sectors, companies like PartnerPlast are positioned at the forefront of market needs, emphasizing advanced design and manufacturing capabilities.
The demand for innovative plastic solutions, especially in environmentally conscious applications, grants competitive advantages to companies that can integrate sustainable practices into their operations. This shift towards sustainability is prompting investments into research and development, further bolstering industry growth.
Norway's strategic geographical location, along with its reputation for high-quality production, allows domestic companies to tap into international markets effectively. Moreover, the Norwegian government offers various incentives aimed at stimulating growth in manufacturing, which can greatly benefit companies pursuing expansion.
As the industry evolves, the convergence of technology and manufacturing processes will likely result in new opportunities for collaboration and innovation, driving the sector forward.
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The Rationale Behind the Deal
The acquisition of Molstad Modell & Form aligns with PartnerPlast's ambition to strengthen its capabilities in the production of polyurethane products. By integrating Molstad's expertise, PartnerPlast can diversify its offerings and enhance its overall competitiveness in the market.
This strategic move is anticipated to foster closer ties with the inland industry and facilitate the establishment of new production techniques on-site at Moelv. Samuelsen believes that enriching the existing talent pool at Molstad will greatly benefit the operations within PartnerPlast.
Information about the Investor
Investinor is a state-owned investment company in Norway that has partnered with PartnerPlast since June 2014. This partnership has led to several acquisitions aimed at expanding PartnerPlast's operational footprint and enhancing its market capabilities.
View of Dealert
The acquisition of Molstad Modell & Form by PartnerPlast appears to be a well-structured investment that aligns with market trends. By integrating Molstad’s capabilities, PartnerPlast is not only positioned to enhance its product range but also to solidify its market presence in the growing polyurethane segment.
Moreover, with the ongoing push for sustainability and innovation in the manufacturing sector, PartnerPlast's strategy to bolster its competencies in this area is commendable. The establishment of an environment for polyurethane casting signals a commitment to meet evolving industry demands while remaining competitive.
In terms of risk mitigation, the acquisition reduces reliance on external suppliers for critical processes, potentially leading to improved margins and efficiencies. As such, this deal should strengthen PartnerPlast's operational foundation and provide a platform for long-term growth.
Overall, the decision to acquire Molstad Modell & Form reflects a proactive approach to business development and places PartnerPlast in an advantageous position as it seeks to expand and innovate within the Nordic manufacturing landscape.
Similar Deals
PartnerPlast AS
invested in
Molstad Modell & Form
in 2015
in a Add-On Acquisition deal
Disclosed details
Revenue: $1M