Denmark’s SP Group (Søndersø; www.sp-group.dk), through its Tinby subsidiary, has acquired LM Skumplast (Tjaereborg / Denmark; www.lmskum.dk), a manufacturer of polyurethane (PU) and polyisocyanurate (PIR) foamed products used in insulation products. SP has paid DKK 6.6m (EUR 0.9m) for the company, which includes DKK 200,000 in debt.

LM Skumplast, which has 6 employees, caters mostly to the Danish market and also exports to other European countries. Its customers are mostly from the building industry where there is strong demand for insulation products for walls and floors, for example, with other customers in the food-related sector requiring insulation for cold storage warehouses and refrigerated transport. Revenues in 2017 are expected to be around DKK 10m with EBITDA of approximately DKK 2m.

SP said the deal boosts its position as one of the leading plastics companies in northern Europe, adding new products and services in the form of PU plates and profiles for insulation as well as access to new customers. There will be some cost synergies but there is no significant overlap of customers, the group noted.

Frank Gad, CEO of SP Group, said together, the companies will profit from experience on both sides in R&D, production and sales of PU products to strengthen their competitive position and create an even stronger position globally. Tinby’s managing director, Torben Nielsen, added that the acquisition boosts its core competences, for example in customer-defined PU solutions, and adds a production facility for block foaming.

The purchase follows that of PlexxOpido (Kråkerøy / Denmark; www.gibo.dk), which was close to finalising at the end of last year – see Plasteurope.com of 09.12.2016. SP expects to announce its outlook for 2017 on 30 March.