Monday, November 4, 2024
Norwegian recycling solutions giant TOMRA has announced the acquisition of an 80% stake in c-trace GmbH, a leading German digital waste management solutions provider, marking a significant expansion of its technological capabilities in the recycling sector.
Founded in 2005, c-trace has established itself as a pioneer in combining software and hardware modules to digitize waste management operations. The company, which employs approximately 120 people, has demonstrated impressive growth with annual rates exceeding 15% and revenues of EUR 21 million in the past twelve months, maintaining a robust 23% adjusted EBIT margin.
TOMRA’s President and CEO, Tove Andersen, expressed enthusiasm about the acquisition, stating, “This allows TOMRA to broaden our offering in the waste management and recycling space and adds new digitalization capabilities across the recycling value chain.” The partnership aims to leverage TOMRA’s global presence to expand c-trace’s international reach beyond its current 80% German market focus.
The acquisition aligns with TOMRA’s 2024 Capital Markets Day strategy, targeting adjacent business development through M&A activities. The company was attracted to c-trace for three key reasons: the strong growth and profitability in digital waste management solutions, the strategic fit with TOMRA’s market positioning, and c-trace’s leading market position.
The founders of c-trace – Helmut Ziegler, Torsten Olschewsky, and Michael Eikelmann – will retain a 20% stake in the company, with TOMRA holding an option to acquire the remaining shares after two years. The trio expressed optimism about joining TOMRA, highlighting the potential for innovation collaboration and market expansion.
The deal is expected to be immediately accretive to TOMRA’s earnings and support the company’s capital return targets. As municipalities and industries face increasing pressure to improve operational efficiency and meet stricter environmental regulations, the acquisition positions TOMRA to capitalize on growing demand for digital waste management solutions.
TOMRA was founded in 1972 and works with transforming how business and society obtain, use and reuse the planet’s resources. The company’s advanced collection and sorting technology supports the transition to a circular economy, optimizes resource use and minimizes waste in the food, recycling, and mining industries.
TOMRA has approximately 110,000 installations in over 100 markets worldwide and had total revenues of about 1,288 million EUR in 2023. The Group employs 5,400 globally and is publicly listed on the Oslo Stock Exchange. The company headquarters are in Asker, Norway.
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