Zotefoams Acquires Verttec LLC to Expand US Foam Manufacturing
What happened
Zotefoams acquired Verttec LLC, a manufacturer of technical roll foams based in East Greenville, Pennsylvania, USA. The total consideration for the acquisition is up to US$7.3 million. Zotefoams paid an initial consideration of US$5.1 million, with up to an additional US$2.2 million payable over 24 months based on performance criteria. The acquisition adds specialist crosslinked roll foam capability to Zotefoams.
From investegate.co.uk
Why it matters
The acquisition extends Zotefoams' range of products for converter customers and provides cost-effective growth capacity in the North American market. Zotefoams estimated that replicating Verttec's capability internally would cost approximately US$20 million and take five years to complete.
A manufacturer is focusing on driving growth within the North American market.
From investegate.co.uk
Who's involved
- ZotefoamsFoam manufacturer that acquired Verttec LLC
- KentuckyState where Zotefoams operates its block foam manufacturing
- North AmericaMarket where Zotefoams supplies foam products
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- North AmericaSpeculative
The expanded manufacturing capability of Zotefoams might increase its supply capacity for customers operating within the North American market.