Tomra Systems (TOM) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition targets a leading provider of digital waste management solutions, expanding into adjacent, high-growth markets aligned with resource optimization and recycling goals.

• The acquired company’s technology and market position in Germany offer a strong entry point and complement existing business lines.

• The deal supports ambitions to increase collection and recycling rates, enhances digital capabilities, and aligns with the 2024 Capital Markets Day strategy.

• The acquisition supports diversification of revenue streams and increases market impact.

Financial terms and conditions

• 80% of shares acquired for EUR 56 million in cash, using existing financing, with an option to buy the remaining 20% after two years.

• The acquired company generated EUR 21 million in revenue over the last 12 months, with an EBITDA margin of 23%.

• EV/EBITDA multiple is approximately 12x on a trailing 12-month basis.

• The acquisition is expected to be immediately accretive and deliver strong capital returns.

Synergies and expected cost savings

• Focus is on growth and technology synergies, not cost synergies.

• Plans to leverage R&D and innovation to accelerate product development and international scaling, combining solutions and customer bases.

• Digital capabilities from the acquisition will benefit core divisions, especially recycling and collection.

• Expansion of the acquired company's international presence will leverage the acquirer's global footprint.