Topic: Investment

• The German WDM Group, a leading supplier of customised, spot-welded wire mesh solutions, and the German Deutenberg Group, a producer of high-quality bent wire components, join forces

• The partnership will reinforce the market leadership in the field of special industrial wire mesh, and aims to expand the product portfolio and manufacturing expertise

Wolfshagen and Ense/Höingen, 1 July 2021 – WDM Wolfshagener Draht- und Metallverarbeitung, a portfolio company of the private equity firm Cross, and Deutenberg are merging to form a European market leader for customised, spot-welded wire mesh solutions, bent wire components, wire mats, and grid mesh components. The private equity firm Gimv joins as an additional shareholder with a minority stake in the new WDM/Deutenberg Group.

Founded in 1994 and based in the German state of Brandenburg, WDM produces 35,000 spot-welded wire mesh units per day. Its core competence lies primarily in the production of customised, special industrial mesh. WDM’s customers include renowned companies in sectors such as construction, industry, trade, logistics and livestock farming. WDM was acquired in early 2018 by Cross, a private equity firm specialising in succession planning, and has since pursued a focused expansion strategy: At the end of 2019, the acquisition of Midrahtec Drahtwaren based in Leisnig, Germany, marked an important step on this growth journey, bringing both additional expertise in advanced 3D-forming and -welding processes as well as a new location to WDM Group.

Deutenberg, a family business based in Ense in Germany’s Sauerland region, has more than 60 years of experience as a specialist in the development and production of high-quality wire products for sectors such as industry, architecture, retail and shopfitting. The group is an ideal complement for WDM, both in terms of product offering as well as end markets served. With Deutenberg, WDM strengthens its position as a leading supplier of wire mesh solutions and expands both its product portfolio and manufacturing expertise. The long-standing experience of both companies in producing wire products will enable the combined group to drive innovations in this area even more effectively in the future.

Dr Michael Petersen, Managing Partner at Cross Equity Partners AG and Chairman of the Board of the new WDM/Deutenberg Group, says: “The acquisition of Deutenberg as part of a family succession solution is another milestone in WDM’s growth journey and enables us to cover the end markets even better.”

Ronald Bartel, Partner at Gimv‘s Smart Industries team in Munich, explains: “Combining WDM and Deutenberg creates a clear European market leader and enables the two companies to jointly respond even better to customer-specific requests and offer larger quantities.”

Ernst Hüffmeier, CEO of WDM, adds: “The merger with Deutenberg is a significant step for us. We look forward to working with their experienced management team to provide even better solutions to our customers.”

Mentha has entered into a partnership with Multitubes Group to enable further growth. Multitubes was founded in 1999 by the Rensen family and has since grown into a specialist in sustainable packaging with customers throughout Europe. The company was the first in the world to launch a negative CO2 emission tube onto the market made from sugar cane. In addition, all tubes produced by the Multitubes Group are fully recyclable. The investment supports organic growth and paves the way for strategic acquisitions.

Multitubes offers a full range of packaging for cosmetics, food, pharmaceuticals and industrial products with its two factories and various sales offices. Flexibility, innovation, sustainability, and quality form the basis for the company which currently employs about 135 people. Multitubes focuses on custom tubes, in addition to standard sizes, and therefore has the capacity to make and deliver almost every conceivable tube packaging including a range of prints and labels.

Rob Rensen, Managing Director of Multitubes: “Our company has grown rapidly in recent years, which is down to the teamwork, dedication and motivation of everyone who works here. With Mentha as a financial partner, this growth can be sustained, and we have more clout to make a sustainable difference in packaging internationally.”

Mentha chose to take a stake in Multitubes because of the company’s innovation efforts, the importance placed on sustainability, as well as the entrepreneurial character of the founders. The focus in the coming period will be on growth, including growth through acquisitions, and the joint development of the most innovative and qualitative packaging for the various sectors served by Multitubes.

Mark van Ingen, partner at Mentha: “Multitubes originated from the drive and pioneering mentality of the Rensen family. In the past 21 years they have managed to turn it into a very mature company. The culture of Multitubes and the DNA of the founders is very much in line with that of Mentha; we speak the same language and are clearly complementary to each other. The initiatives taken on the sustainability of plastics also appeal to us, and together we will work hard to remain at the forefront of the packaging industry.”

Aibel’s owners, including Ratos AB (publ) (“Ratos”), are considering the possibility of diversifying the company’s ownership, preferably through a listing on the Oslo Børs, in order to further accelerate its transition into the renewable energy industry. However, a final decision has not been taken.

Ratos currently owns 32% of Aibel. The other owners are Ferd (50%) and Sixth AP Fund (18%).

“Aibel has undergone an outstanding transition over the past five years with Mads Anderson as CEO. Its operations are stable, and half of the order book now comprises projects related to offshore wind power and electrification. The company is in a transitional period, and the Board and owners believe it would be advantageous to further improve the company’s financial conditions for continued growth,” says Christian Johansson Gebauer, Business Area Manager at Ratos and Board member of Aibel.

For further information about Aibel, visit https://aibel.com

For further information:
Christian Johansson Gebauer, Head of Business Area Construction & Services
+46 8 700 17 00

Johan Hähnel, Acting Head of Communications and IR
+46 8 700 17 00

This release is not and does not form part of an offer of securities for sale in the United States or in any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration.

About Ratos:
Ratos is a business group consisting of 12 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2020, the companies have approximately SEK 34 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.

Diab has acquired the ULTEM^TM foam production line from SABIC, a global chemical company, to broaden product offering and better be able serve high end core material applications. ULTEM^TM resin-based foam has excellent fire, smoke and toxicity (FST) properties making the material especially well-suited for aerospace applications.

ULTEM^TM resin-based foam is a recyclable PEI (Polyetherimide) thermoplastic foam used mostly in aerospace applications. Diab will incorporate the product into its current portfolio under the name Divinycell U.

“We are excited to broaden our portfolio with the acquisition of the ULTEM^TM foam production line and develop the technology further,” says Diab’s CEO, Tobias Hahn. “This will strengthen our position in the market, enabling us to offer even more fit for purpose core material. Strong material properties in fire, smoke and toxicity is very important in the aerospace segment and we believe that Divinycell U will complement our current FST range benefitting our customers.”

Diab will relocate the acquired production line equipment to its manufacturing site in DeSoto, TX, USA. Beginning Q3-2021, Diab will produce and market the Divinycell U portfolio to existing and new users of the ULTEM™ resin-based foam.
For further information, please contact:
Tobias Hahn, CEO, Diab Group
+46 70 890 94 98
tobias.hahn@se.diabgroup.com

Joakim Twetman, Head of Business Area Industry, Ratos
+46 70 339 16 66
joakim.twetman@ratos.com

About Diab:
Diab offers industry-leading competence together with the broadest range of stronger, lighter, smarter core materials. Today Diab is one of the world’s largest manufacturers of structural core materials with a turnover of approx. SEK 2,1 billion and 1,300 co-workers. Diab has six strategically located manufacturing sites and 14 sales units worldwide to support its global customers. Diab is owned by Ratos AB and is a UN Global Compact participant for a more sustainable society.

About Ratos:
Ratos is a business group consisting of 12 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2020, the companies have approximately SEK 34 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.

SABIC and brands marked with ™ are trademarks of SABIC or its subsidiaries or affiliates.