Tennant Company has signed a definitive agreement with private equity fund Ambienta to acquire IPC Group for an estimated $350 million (€330 million) – making it the largest acquisition by Tennant in its history.
IPC group is a privately held designer and manufacturer of commercial cleaning solutions based in Italy. In 2016, IPC Group generated annual sales of $203 million (€192 million).
More than 80 per cent of IPC Group’s business is concentrated in Europe, with the remaining percentage split evenly between the Americas and the Asia Pacific regions.
Chris Killingstad, Tennant Company president and CEO acquiring IPC Group was a “strategic move that aligns with our growth aspirations.”
“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,” Killingstad said.
Acquisition to broaden product range
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.
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.
“We intend to market both the Tennant and IPC Group brands as part of our multi-brand portfolio. IPC Group is a growing and profitable business with a strong management team and we are excited about our combined potential,” Killingstad said.
Tennant expects the acquisition to be completed in the 2017 second quarter. The timing is subject to customary conditions and regulatory approvals.
Goldman, Sachs & Co. acted as financial advisor and Baker & McKenzie acted as legal counsel to Tennant Company. Baird acted as financial advisor and Linklaters acted as legal counsel to Ambienta.