Ettiketto Group continues its growth with the acquisition of StrongPoint’s labels business
Volati has signed an agreement to acquire the labels business from StrongPoint, a provider of technology solutions to the retail sector and listed on the Oslo Stock Exchange. The acquisition is an add-on acquisition for the Ettiketto business unit within the Industry business area. It strengthens Ettiketto’s offering in the Swedish market and represents a strategically important entry into the Norwegian market. The acquired business reported annual sales of approximately SEK 185 million in 2020 with an EBITDA, excluding IFRS adjustments, of approximately SEK 25 million.
The acquisition of StrongPoint’s labels business is the third synergistic add-on acquisition for Ettiketto in the last twelve-month period. As a result, the business unit’s annual sales have increased from approximately SEK 250 million to approximately SEK 750 million and Ettiketto now has a market-leading position in Sweden.
“Volati has a clear ambition to build strong business units that can be developed through acquisitions. The aim is that some of them will eventually develop into separate business areas within the Volati Group and Ettiketto is a good example of this. We are pleased at the opportunity to acquire StrongPoint’s labels business, which is one of the best companies in the industry. The acquisition fits in well with Ettiketto’s growth strategy and strengthens our position as a comprehensive supplier of label solutions”, says Nicklas Margård, Head of Business Area Industry.
StrongPoint has a strong position as a supplier of self-adhesive labels to the retail sector, assisting customers throughout the chain from design to printing. The company has two production facilities – in Malmö and in Tangen, Norway – with the latest equipment in digital and flexo printing. The number of employees is approximately 70.
“It is with great pleasure that we welcome StrongPoint’s labels business to Ettiketto. This is a company we have followed for a long time and one of our most competent sector colleagues. The business is characterised by good margins and a strong customer offering, particularly in short-run label production with fast delivery. In addition to strengthening our position in Sweden, the acquisition gives us a clear growth platform in Norway, with local production, which is in line with our increasingly strong Nordic focus. As with our previous add-on acquisitions, we will gain clear synergies and in this case we see the possibility to improve the company’s EBITDA by a further 50 percent,” says Ettiketto CEO Rikard Ahlin.
The acquisition is financed through Volati’s existing credit facilities. The transaction is expected to be completed on 1 July 2021 for the Swedish operations and on 1 September 2021 for the Norwegian operations. The acquisition is not expected to have any significant impact on Volati’s results for 2021.