Hyvinkää, Finland – Finnish investment company Neo Industrial plc is acquiring rubber products manufacturer Reka Rubber Group for €7.5 million, it was announced.
The all share purchase is expected to be completed no later than 1 July, and will see the addition of a rubber business to Neo’s portfolio of industries, said the investment company in a 2 June statement.
The current owner of Reka Rubber Ltd is Reka Ltd, which owns 51.12% of shares and 66.03% of votes of Neo Industrial Plc.
As part of the integration process, the industrial parts of Reka Ltd will be combined with those of Neo’s – including its cables operation – and the business will be renamed as Reka Industrial.
With production bases in Aura, Finland and in Dopiewo, Poland, Reka Rubber is a European manufacturer of small and medium-sized rubber components for the heavy vehicle and machine building industries.
The company also manufactures parts in Asia through a subcontracting network.
The Finnish supplier reported sales of €22 million and earnings of €1.8 million in 2019.