All-cash transaction valued at $350 million (€330
million);
Provides scale to accelerate growth and improve profitability in
EMEA;
Expands Tennant’s product portfolio and market coverage;
Businesses highly complementary and differentiated
MINNEAPOLIS--(BUSINESS WIRE)--
Tennant Company (NYSE:TNC), a world leader in designing, manufacturing
and marketing solutions that help create a cleaner, safer world, today
announced that it has signed a definitive agreement with private equity
fund Ambienta to acquire IPC Group, a privately held designer and
manufacturer of commercial cleaning solutions based in Italy, in an
all-cash transaction valued at approximately $350 million (€330
million). In 2016, IPC Group generated annual sales of approximately
$203 million (€192 million). When finalized, this will be the largest
acquisition in Tennant Company history. Tennant anticipates that the
acquisition will be accretive to 2018 full year earnings per share.
Commented Chris Killingstad, Tennant Company president and chief
executive officer: “Acquiring IPC Group is a strategic move that aligns
with our growth aspirations. IPC Group significantly increases our
presence and market share in Europe, and more than doubles Tennant’s
current EMEA business. We will gain the scale to accelerate both
Tennant’s and IPC Group’s growth, and better leverage our cost structure
in EMEA. Importantly, our businesses are highly complementary and
differentiated in our geographies, products and go-to-market approach.”
More than 80 percent of IPC Group’s business is concentrated in Europe,
with the remaining percentage split evenly between the Americas and the
Asia Pacific regions. In addition to expanding Tennant’s EMEA market
coverage, IPC Group’s brands broaden Tennant’s range of product
offerings. The companies’ brands see little overlap due to their
differentiated market positions.
IPC Group produces small- to mid-sized commercial cleaning machines and
equipment, including floor sweepers and scrubbers, vacuum cleaners,
high-pressure washers, and related aftermarket parts and services. IPC
Group also expands Tennant’s product portfolio to cleaning tools and
supplies, such as multi-purpose cleaning trolleys, window-washing
systems, antibacterial microfiber mops and cloths, and a wide array of
consumables. Like Tennant, IPC Group is committed to product innovation
and sustainability, with a focus on reducing energy, water and detergent
use.
IPC Group sells its products under the brand names IPC, IPC Foma, IPC
Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco,
Readysystem, Euromop, and Pulex. Both companies’ brands will continue to
operate in their markets, as they do today. The companies also have
highly complementary sales channels. Tennant anticipates that this will
provide incremental sales opportunities for both companies going forward.
Said Killingstad: “We intend to market both the Tennant and IPC Group
brands as part of our multi-brand portfolio. IPC Group is a growing and
profitable business with a strong management team and we are excited
about our combined potential.”
Tennant expects the acquisition to be completed in the 2017 second
quarter. The timing is subject to customary conditions and regulatory
approvals.
Goldman, Sachs & Co. acted as financial advisor and Baker & McKenzie
acted as legal counsel to Tennant Company. Baird acted as financial
advisor and Linklaters acted as legal counsel to Ambienta.
About IPC Group
Italy-based IPC Group is a leading provider of professional cleaning
solutions for commercial markets. The company was established in 2005,
following the merger of a number of leading companies in the
professional cleaning sector, each specializing in a different product
segment. From 2014 IPC Group has been a portfolio company of Ambienta, a
leading European private equity fund focused on industrial growth
investing in companies driven by environmental trends. The company has
11 offices worldwide and sells in more than 100 countries. For more
information, please refer to the Fact
sheet presentation accompanying this release or visit www.ipcworldwide.com.
About Tennant Company
Minneapolis-based Tennant Company (TNC) is a world leader in designing,
manufacturing and marketing solutions that empower customers to achieve
quality cleaning performance, significantly reduce their environmental
impact and help create a cleaner, safer, healthier world. Its products
include equipment for maintaining surfaces in industrial, commercial and
outdoor environments; detergent-free and other sustainable cleaning
technologies; and coatings for protecting, repairing and upgrading
surfaces. Tennant's global field service network is the most extensive
in the industry. Tennant has manufacturing operations in Minneapolis,
MN; Holland, MI; Louisville, KY; Chicago, IL; Uden, The Netherlands; São
Paulo, Brazil; and Shanghai, China; and sells products directly in 15
countries and through distributors in more than 80 countries. For more
information, visit www.tennantco.com.
The Tennant Company logo and other trademarks designated with the symbol
“®” are trademarks of Tennant Company registered in the United States
and/or other countries.
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and oral statements made by us from time to time, are considered
“forward-looking statements” within the meaning of the Private
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of all risks or uncertainties.
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Source: Tennant Company