BEWI, a leading provider of packaging, components, and insulation solutions, today announces that the company has entered into an agreement to merge its traded food packaging business with STOK Emballage ("STOK"), forming a leading Northern European packaging solutions business. BEWI will receive a cash consideration of EUR 20 million in addition to an ownership position in the combined entity of approximately 15 per cent.
"Partnering with STOK presents a unique opportunity to further expand the traded food packaging business with a highly capable partner," says Christian Bekken, CEO of BEWI.
BEWI's traded food packaging business is currently reported under the Packaging & Components segment and includes net sales of approximately EUR 75 million. The business has a solid position within food packaging in Norway and Iceland, with a particular focus on the seafood industry. STOK is a leading value-added distributor of protective packaging in Denmark and Greenland and provides a one-stop solution of packaging products, machinery, logistics services and regulatory and compliance advice. The company has strategically located warehouses in Denmark, Greenland and Norway. The complimentary combination of BEWI's traded food packaging business and STOK creates a leading packaging distributor across Denmark, Norway, Iceland and Greenland. In 2023, STOK had sales of EUR 113 million, thus the combined company will have annual sales of close to EUR 190 million and a clear strategy for further growth.
"STOK is an ideal partner for our traded packaging business, and we are truly looking forward to join forces with their team of industry experts. They have an impressive track-record of profitable growth over several years, and their broad and diverse product portfolio complements ours very well, creating a strong potential for synergies and further growth opportunities," Bekken continues.
The partnership aligns with BEWI's previous communication regarding the consideration of strategic partners for its divisions and intention to increase exposure to insulation and other energy-efficient solutions. The sale simplifies the structure of BEWI's packaging business, while at the same time increasing the group's cash position and financial flexibility, enabling the company to act on opportunities which will accelerate growth and enhance shareholder value.
The agreed consideration will be settled in EUR 20 million cash, and an ownership position in the combined company of approximately 15 per cent. Closing of the transaction is expected to take place during the fourth quarter of 2024 or first quarter of 2025.
Contact:
Charlotte Knudsen, Chief Communications and IR Officer BEWI ASA, tel: +47 9756 1959
About STOK Emballage
Founded in 1978 and headquartered in Langeskov, Denmark, STOK Emballage is a leading one-stop-shop distributor of protective packaging, offering a comprehensive range of customisable and standard packaging materials, on-site machinery services, warehousing solutions and advisory services. With a leading position in Denmark and a rapidly expanding international presence, STOK caters to a diverse customer base across the food & beverage, consumer lifestyle, industrial, and healthcare sectors. The company has historically experienced strong organic and acquisitive growth, completing 13 acquisitions over the last 26 years, five of which were in the previous three years.
STOK is owned by funds advised by A&M Capital Europe and the Stok family and management, and has a strong heritage and innovative mindset, achieving significant growth through both strategic excellence and successful acquisitions.
About BEWI ASA
BEWI is an international provider of packaging, components, and insulation solutions. The company's commitment to sustainability is integrated throughout the value chain, from production of raw materials and end goods, to recycling of used products. With a vision to protect people and goods for a better every day, BEWI is leading the change towards a circular economy.
BEWI ASA is listed at the Oslo Børs under ticker BEWI.
The information is such that BEWI ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:50 CEST on 24 October 2024.
