Sulzer acquires Geka and enters the cosmetics market

Vincent Gallon

4 July 2016

Sulzer, a Swiss company specialising in pumping solutions, rotating equipment services, and separation and mixing technology, has signed a binding agreement to acquire Geka GmbH, a supplier of applicators and packaging for the cosmetics industry headquartered in Bechhofen, Germany, from investment company 3i for EUR 260 million (CHF 282 million). The transaction creates a leader in proprietary B2B mixing and applicator solutions.

Through the acquisition of Geka, Sulzer Mixpac Systems (SMS) - a business unit of Sulzer’s Chemtech division - is doubling its size and is gaining critical industrial mass and segment and geographical diversification. The SMS business unit is specializing in innovative high precision plastic injection moulding and develops proprietary B2B mixing and applicator solutions for the dental and industrial adhesives markets

**Headquartered in Bechhofen, Germany, Geka is a leading manufacturer of brushes, applicators and complete packaging systems for the cosmetics and pharmaceutical industries.**

“Both businesses share the same industrial core in high precision plastic injection moulding, which allows for significant cost synergies. Geka and SMS have complementary geographic manufacturing footprints, which will enable the combined business to compete globally as a leading solution provider,” explained Sulzer in a release.

SMS will add Geka’s position in the cosmetics segment to its current leadership in the dental and industrial adhesive segments, thus extending its portfolio of B2B end-market segments for high-precision plastic injection moulding applications. Furthermore, SMS will combine its own healthcare business with Geka’s emerging healthcare business.

Geka, one of the world’s leading manufacturers of brushes, applicators and complete packaging systems for the cosmetics and pharmaceutical industries, has approximately 900 employees and has two manufacturing locations in Germany, one in the USA, and one in Brazil. In 2015, Geka opened sales and sourcing offices in Shanghai and Hong Kong. In addition, the company has successfully expanded its production capabilities in the US. With the acquisition of Oeka, a German manufacturer of plastics and metal components, in 2015, Geka has strengthened its foothold in the prestige market segment. Geka is expected to achieve revenues of around EUR 150 million and an EBITDA of around EUR 27 million in 2016.

“We look forward to working with Sulzer for the next chapter in our development and believe that Geka will benefit greatly from the opportunities in the healthcare market which our collaboration with Sulzer will bring,” said Amaury de Menthière, CEO of Geka.

The transaction is expected to close in the third quarter, subject to regulatory approval. Sulzer, which will take on all Geka employees, expects a cost synergy run rate of EUR 9 million within three years.