Datwyler with strategic acquisition to accelerate profitable growth.

Ad hoc announcement pursuant to Art. 53 LR SIX Swiss Exchange |
With its strategic acquisition of the US company Parco, Datwyler is significantly expanding its existing O-ring business and thus adding multiple new industries to the portfolio of its Sealing Solutions division. Strong market positions and state-of-the-art production plants have put Parco on a profitable growth path. Targeted cross-selling will enable Datwyler and Parco to accelerate both companies’ profitable growth.

With a strategic acquisition in its Sealing Solutions division, Datwyler is significantly expanding its existing O-ring business and is thus gaining access to multiple new industries. On 31 August 2018, Datwyler signed a contract to acquire the US company Parco Inc., based in Ontario, California. The contract is expected to be completed in the coming weeks, subject to the fulfilment of the usual conditions for completion. The parties have agreed not to disclose the purchase price.

Acquiring Parco opens up some new market segments for us and presents us with wide-ranging options for strategic development. Targeted cross-selling will enable us to accelerate the profitable growth that both Parco and Datwyler have been enjoying.

Dirk Lambrecht, CEO of the Datwyler Group

Leading manufacturer of O-rings for multiple industries

A family-owned company, Parco is a leading provider of O-rings and customised elastomer seals for multiple industries in the USA. Like Datwyler, Parco also has a compound development and en-gineering department as well as its own mixing facility and mould and die production. Around 275 staff generate annual revenue of some CHF 60 million. With over 70 years’ experience, Parco boasts customer relationships stretching back over many years as well as four cutting-edge produc-tion sites in the USA. Its combination of automated production lines, process efficiency, top quality and strong market positions has put Parco on a profitable growth path. Its current management team will be retained to ensure continuity in the company’s further development.

Gaining access to strategically attractive new industries

With its acquisition of Parco, Datwyler is opening up access to several strategically attractive new industries for the Sealing Solutions division, particularly oil and gas, as well as aerospace, water fil-tration, farm, construction and fuel-dispensing. At the same time, Datwyler is significantly expanding its existing O-ring business, which it acquired in its 2015 takeover of Origom. Targeted cross-selling of existing Datwyler products to Parco’s current customers and vice versa will enable both compa-nies’ profitable growth to be accelerated. Datwyler is also strengthening its presence in the USA, a key market.

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