Acquisition con-call
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Globally, Plastic labware market is around 50 thousand crore. Europe is 2nd largest market in plastic labware
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Co was evaluating various routes of inorganic growth and this company seemed to meeting the desired objectives
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Nerbe – Hamburg based company. 4 decade old entity. Well spread product portfolio. Presence in 30 countries outside Germany. Promoter will continue to run the company.
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Acquisition gives Tarsons the gateway to expanding in Europe.
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Deal value estimated to be around 10 to 15 million Euro. Milestone based payment. Exact value will be based on FY 24 numbers…
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Deal is based on FY 23 Numbers. They felt that it’s the right price and not very cheap…
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Will be funded through internal accruals.
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Acquisition should be evaluated looking at the synergies and market expansion opportunities, and not just based on EBITDA multiple
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While there were questions on dip in FY 22 revenue, management responded that the larger objective was to scale up Tarsons products in the huge European market.
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Nerbe’s Inability to scale up – Conservative Family run business. Wanted to remain focused in Europe and did not look to scale up or expand beyond.
Disc: Tracking
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