Sulzer has signed a binding agreement to acquire German brush manufacturer Geka for €260 million from investment company 3i. The transaction is expected to close in the third quarter of 2016, subject to regulatory approval.
The deal will transform the Swiss firm into a leading light in the proprietary B2B mixing and applicator solutions industry. Geka will join Sulzer’s Mixpac Solutions (SMS) business unit, bringing critical mass and diversifying its activities both geographically and by segment – Geka’s cosmetics business in particular will add valuable resilience to Sulzer’s operations.
“Geka has enjoyed exciting growth over the past years and I would like to thank 3i for its value-adding partnership. We look forward to working with Sulzer for the next chapter in our development and believe that Geka will benefit greatly from the opportunities in the healthcare market, which our collaboration with Sulzer will bring,” commented Geka CEO Amaury de Menthière.
Shares in Sulzer soared following the news, up 9.2 percent – setting the company on track to achieve its biggest rise in six years, according to a report published by Bloomberg.