The deal includes the cash acquisition of 100% of Nitta Casings in the US and 100% of Nitta Casings in Canada for an enterprise value of US$13.5m. An additional payment of US$1.5m could be paid in 2021 if EBITDA for 2020 reaches US$1.8m. Viscofan has also paid US$2.8m in cash and incorporated US$10.7m as financial debt and pensions.
Nitta Casings has been owned by Nitta Gelatin Group since 1996 and has annual sales of US$40m. The acquired companies have an extrusion manufacturing centre of collagen in New Jersey, US and a converting centre in Ontario, Canada with a product portfolio that includes collagen casings, collagen gel and biomedical products based in collagen.
Viscofan chairman José Domingo de Ampuero said: “Nitta Casings’ acquisition is a landmark for Viscofan. Such transaction will enable us to fulfill our production capabilities in North America with collagen casings by adding manufacturing centers in the United States and Canada.
“This move fits our ‘MORE TO BE’ strategy aimed at reinforcing our commitment to the development of the global market in all casing technologies. To welcome Nitta Casings’ human team is a new push for this commitment thanks to better time to market and technology diversification to improve customer service, not just in the region, but also worldwide.”
Nitta Gelatin representative director and president Koichi Ogata added: “NGI welcomes this transaction as an achievement that is in line with the business strategies of both Nitta Gelatin Group and Viscofan Group. NGI believes that Viscofan Group’s expertise in the casing business will contribute to an increase in the mid-long term corporate values of Nitta Casings Inc. and Nitta Casings (Canada) Inc.”