Packaging giant BEWI aiming for Oslo-listing

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BEWiSynbra Group, a leading international provider of insulation and packaging solutions, today announces its intention to apply for the shares in a newly established Norwegian parent company, BEWi, to be admitted to trading on Merkur Market, a multilateral trading facility operated by Oslo Stock Exchange. 

“Through the recently announced acquisition of BDH, we further strengthen our position as a major international provider of insulation and packaging solutions, in line with our long-term strategy for growth and diversification. Now, we are ready to take a leading role in the ongoing consolidation of our industry, and we therefore consider a listing of BEWi to be strategically important, and certainly also a milestone for BEWi,” Gunnar Syvertsen, Chairman of the Board of BEWi, said.

BEWi was founded in 1980 by the Bekken family at Frøya, Norway, and has since then grown to become a major European player in both the insulation and the packaging industry. BEWi delivers innovative and sustainable products & solutions, protecting both people and goods, such as fish boxes, bike helmets, pharmaceutical packaging, child seats as well as insulation products for buildings and infrastructure. BEWi is integrated through the value chain, from production of raw materials to end products as well as recycling of used products. The integrated model diversifies business exposure and serves as both a margin stabilising, as well as a margin enhancing measure positioning BEWi well to meet fluctuating market conditions.

Since 2018, BEWi has increased its focus on its environmental footprint. Through the dedicated business area BEWiSynbra Circular, BEWi today recycles 20,000 tonnes of EPS products annually. During 2021, BEWi expects to reach a recycling capacity of 60,000 tonnes, evaluated as an important measure to meet future business, as well as environmentally related demands.

17 August, BEWiSynbra announced the acquisition of the Norwegian company BEWi Drift Holding (BDH) for a total consideration of NOK 400 million. BDH is a supplier of packaging products for use on land and at sea and solutions for insulation and the acquisition provides BEWi with an expanded product portfolio and geographic reach. Following the acquisition of BDH, BEWi controls a total of 38 facilities in Europe.

In the first half of 2020, BEWi delivered Net Sales of SEK 2.7 billion and an adjusted EBITDA of SEK 378 million, when including BDH on a pro forma basis (unaudited).

“Our strategic priorities are to continue to grow through accretive acquisitions, further strengthen our circular activities and continue to innovate new sustainable solutions for our customers. Our integrated business model has proven very robust, both in times of fluctuations in raw material prices and lately, through the challenging Covid-19 situation, providing us with a solid foundation to realise our strategy, as earnings have proven to be very resilient, Christian Bekken, CEO of BEWi said.

Following the placement of existing shares, BEWi ASA will apply for admission to trading of its shares on Merkur Market, a multilateral trading facility operated by the Oslo Stock Exchange. The listing is currently expected to take place in August or September.

The Bekken family currently owns approximately 66.7 per cent, funds controlled by Verdane Capital has 17.4 per cent ownership and Kverva owns 9.9 per cent of the shares in BEWi. Following the contemplated placement of existing shares, the Bekken family will own approximately 58.6 per cent and funds controlled by Verdane Capital 15.6 per cent of the shares in BEWi.

The Bekken family will remain a majority shareholder post the contemplated transaction, which is in line with their long-term ownership strategy.

Nordea and SpareBank 1 Markets have been retained as financial advisors in connection with the admission to trading on Merkur Market and the contemplated sale of shares.