XANO signs agreement to acquire US based company within the packaging industry

XANO has signed an agreement, via a subsidiary, to acquire all the shares in Integrated Packaging Solutions (IPS) with subsidiaries, located in Denver, Colorado.

IPS is an international company operating within the packaging sector, mainly targeting the can-making industry. IPS provides machinery and integration technology as well as production-optimisation services to metal packaging manufacturers. The company has 40 employees and access to a wide network of industry experts. In 2022, sales amounted to USD 16 million. IPS is in an expansive phase and expects good growth the coming years related to both existing and new markets.

IPS’ operations primarily complement those of NPB and Canline within XANO's Industrial Solutions business unit, with which there are clear synergies. IPS provides growth possibilities principally in service and aftersales. Through the company's newly developed concept CanSCHOOL, there are opportunities to further deepen collaboration with customers in the can-making industry. The concept is also applicable to other industries in which the business unit companies are active. 

The addition of IPS is supporting XANO's ambitions to expand market shares in the US and become the natural choice of partner for decision makers in investment projects worldwide. The acquisition represents an intensification of the Group's ongoing establishment in the US. The access to IPS' expertise and networks will benefit and speed up the process of making the Group's offering visible in the North American market. 

The purchase sum, to be paid in cash, totals USD 21 million. Balance sheet total amounts to approx. USD 10 million. Net sales amount to USD 16 million with an EBIT margin of just over 20 per cent. The acquired units are initially expected to contribute SEK 0.30 in earnings per share on an annual basis. 

The transaction, which is subject to confirmatory due diligence by XANO and the fulfilment of customary closing conditions, is expected to be concluded during September 2023.