STOCKHOLM, Dec. 17, 2019 /PRNewswire/ -- Ahlstrom-Munksjö has acquired converting operations in China and the U.S. from Shunde Lucas and Altior Industries. Through the transaction, Ahlstrom-Munksjö will have local filter converting capacity in China and a foothold for expanding sales of other products within the Advanced Liquid Technologies business. Local presence in Asia will shorten delivery lead times and enable Ahlstrom-Munksjö to serve its customers even better.
Net sales of the acquired operations are approximately USD 7 million and comparable EBITDA USD 2 million annually, meeting the Group's comparable EBITDA margin target of above 14%. Their product offering of hot cooking oil filters is used in quick service restaurants and food service operations, mainly in China and the U.S. The combined operations are expected to generate substantial synergy benefits. The debt free purchase price is approximately USD 11 million.
"I'm pleased that the new foothold in China will facilitate growth for a wide range of our product offering within our highly attractive Advanced Liquid Technologies business. This deal will also double the company's sales in fry oil filters and make us a global leader in this niche business - a foundation for creating long term value for our stakeholders. In the future our ambition is to expand the Advanced Liquid Technologies business even more through organic growth and acquisitions," says President and CEO Hans Sohlström.
About the Advanced Liquid Technologies business
Ahlstrom-Munksjö's Advanced Liquid Technologies business offers high quality filter solutions for laboratory sample preparation and life science diagnostics materials to be used by laboratories and manufacturers of rapid test kits as well as for collection of biosamples. It also offers high-performance filter media for water purification devices and food and beverage processing industry. Thanks to the robust demand drivers, the Advanced Liquid Technologies business is one of Ahlstrom-Munksjö's fastest growing and highly profitable businesses. Net sales were EUR 73 million and comparable EBITDA margin 30% in 2018. The favorable development reflects successful product development to downstream markets, including high added value and new technologies. The Advanced Liquid Technologies business is part of the Specialties business area.
Going forward in Advanced Liquid Technologies
Ahlstrom-Munksjö aims to strengthen its market position in life science and laboratory product segment through further product development and partnerships. In water purification, the business will build market awareness of its proprietary DisruptorTM technology and confirm technology adoption in existing target segments, while proceeding with initiatives to broaden the scope of the technology. In the food and beverage processing segment, market position will be further reinforced.
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