— By Plasteurope.com staff — 

Norwegian EPS specialist Bewi (Trondheim; www.bewi.com) announced the sale of its majority stake in the feedstock segment Raw to investment firm The Rock Capital Group (TRCG; Luxembourg; www.rockcapitalgroup.lu), the owner of its competitor Unipol (Oss, Netherlands; www.unipol.nl). Bewi announced that the transaction is likely to be finalised in the coming months, subject to regulatory approvals and closing conditions.

Following the sale, Bewi Raw and Unipol are to be merged into one company, forming one of Europe’s leading EPS producers, Bewi said. The combined entity will operate plants in Germany, Finland, and the Netherlands, with a total capacity of 375,000 t/y of EPS. Currently, grey EPS accounts for a share of around 30,000 t/y, but further production conversions are planned to increase capacity for this material, the firm added. The cumulated annual turnover of the merged company is projected to generate around EUR 400 mn.

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According to Bewi, despite the sale, the new company will remain its preferred EPS supplier through long-term agreements. From now on, the Norwegian group will hold 49% of the shares, with the remaining 51% going to the buyer TRCG. The EPS specialist said that both sides are to provide two supervisory board members each to jointly exercise control. The deal with TRCG is expected to add up to EUR 75 mn to Bewi’s coffers. Of this amount, EUR 42.5 mn is to be paid directly after the transaction is completed, with the remainder to follow contingent on the achievement of specific company targets.

The decision to divest comes amid declining performance in Bewi’s EPS production business, according to a company spokesperson. In the nine months to the end of September 2024, the Raw division recorded a year-on-year drop of 23% in sales to EUR 261 mn, and market conditions in the fourth quarter of 2024 did not improve significantly. The segment’s revenue had already declined by 19% in 2023.

Through this transaction, Bewi would retain the operational advantage of vertical integration, emphasised CEO Christian Bekken. “At the same time, it enables growth in our downstream activities,” he said. He sees greater growth potential in the remaining business with insulation materials for buildings and sustainable packaging solutions, both organically and through acquisitions. Bewi is currently also examining options for the automotive business.

— Translated by Christopher Köbel