Ahlstrom-Munksjö Acquires Foodservice Filter Converting Operations in China and U.S. for $11 Million
Shunde Lucas and Altior Industries product offerings include hot cooking oil filters used in quick service restaurants and food service operations, mainly in China and the U.S.
Dec. 18, 2019 (Press Release) - Ahlstrom-Munksjö has acquired converting operations in China and the U.S. from Shunde Lucas and Altior Industries. Through the transaction, Ahlstrom-Munksjö will have local filter converting capacity in China and a foothold for expanding sales of other products within the Advanced Liquid Technologies business. Local presence in Asia will shorten delivery lead times and enable Ahlstrom-Munksjö to serve its customers even better. Net sales of the acquired operations are approximately USD 7 million and comparable EBITDA USD 2 million annually, meeting the Group's comparable EBITDA margin target of above 14%. Their product offering of hot cooking oil filters is used in quick service restaurants and food service operations, mainly in China and the U.S. The combined operations are expected to generate substantial synergy benefits. The debt free purchase price is approximately USD 11 million. “I'm pleased that the new foothold in China will facilitate growth for a wide range of our product offering within our highly attractive Advanced Liquid Technologies business. This deal will also double the company's sales in fry oil filters and make us a global leader in this niche business — a foundation for creating long term value for our stakeholders. In the future our ambition is to expand the Advanced Liquid Technologies business even more through organic growth and acquisitions,” says President and CEO Hans Sohlström. Ahlstrom-Munksjö is a global leader in fiber-based materials. Products include: filter materials, release liners, food and beverage processing materials, decor papers, abrasive and tape backings, electrotechnical paper, glass fiber materials, medical fiber materials and solutions for diagnostics as well as a range of specialty papers for industrial and consumer end-uses. To learn more, visit: www.ahlstrom-munksjo.com. SOURCE: Ahlstrom-Munksjö |