Tennant To Buy IPC In £280million Deal

US-based Tennant Company has announced it has signed a definitive agreement with private equity fund Ambienta to acquire IPC Group, the designer and manufacturer of commercial cleaning solutions based in Italy, in an all-cash transaction valued at approximately $350million (£280million).

In 2016, IPC Group generated annual sales of approximately $203million (£163million). When finalised, this will be the largest acquisition in Tennant Company history.

Chris Killingstad, Tennant Company President and CEO, commented: “Acquiring IPC Group is 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.”

More than 80% of IPC Group’s business is concentrated in Europe, with the remaining percentage split evenly between the Americas and the Asia Pacific regions. 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. Like Tennant, IPC Group is committed to product innovation and sustainability, with a focus on reducing energy, water and detergent use.

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. The companies also have highly complementary sales channels. Tennant anticipates that this will provide incremental sales opportunities for both companies going forward.

Killingstad continued: “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.”

Tennant expects the acquisition to be completed in the 2017 second quarter.

www.tennantco.com

www.ipcworldwide.com