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Tennant Company announces agreement with Ambienta to acquire IPC Group
Tennant Company has announced that it has signed a definitive agreement with private equity fund Ambienta to acquire Italy's IPC Group, in an all-cash transaction valued at approximately $350 million (€330 million). In 2016, IPC Group generated annual sales of approximately $203 million (€192 million). When finalized, this will be the largest acquisition in Tennant Company history.
"Acquiring IPC Group is a strategic move that aligns with our growth aspirations," said Chris Killingstad, Tennant Company president and chief executive officer. "IPC Group significantly increases our presence and market share in Europe, and more than doubles Tennant's current EMEA business.
"We will gain the scale to accelerate both Tennant's and IPC Group's growth, and better leverage our cost structure in EMEA. Importantly, our businesses are highly complementary and differentiated in our geographies, products and go-to-market approach."
More than 80% of IPC Group's business is concentrated in Europe, with the remaining percentage split evenly between the Americas and the Asia Pacific regions.
In addition to expanding Tennant's EMEA market coverage, IPC Group's brands broaden Tennant's range of product offerings. The companies' brands see little overlap due to their differentiated market positions.
IPC Group produces small- to mid-sized commercial cleaning machines and equipment, including floor sweepers and scrubbers, vacuum cleaners, high-pressure washers, and related aftermarket parts and services. IPC Group also expands Tennant's product portfolio to cleaning tools and supplies, such as multi-purpose cleaning trolleys, window-washing systems, antibacterial microfiber mops and cloths, and a wide array of consumables. Like Tennant, IPC Group is committed to product innovation and sustainability, with a focus on reducing energy, water and detergent use.
IPC Group sells its products under the brand names IPC, IPC Foma, IPC Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco, Readysystem, Euromop, and Pulex. Both companies' brands will continue to operate in their markets, as they do today. The companies also have highly complementary sales channels. Tennant anticipates that this will provide incremental sales opportunities for both companies in the future.
"We intend to market both the Tennant and IPC Group brands as part of our multi-brand portfolio," added Chris. "IPC Group is a growing and profitable business with a strong management team and we are excited about our combined potential."
Tennant expects the acquisition to be completed in the 2017 second quarter. The timing is subject to customary conditions and regulatory approvals.
2nd March 2017