Tomra Systems ASA: TOMRA: Acquisition of leading digital waste management solution provider c-trace

"We are very enthusiastic about joining forces with c-trace. This allows TOMRA to broaden our offering in the waste management and recycling space and adds new digitalization capabilities across the recycling value chain. Combining TOMRA's solutions and customer base with c-trace, we can drive innovation and unlock new markets opportunities. Over the next years, our priority will be to expand c-trace's international presence by utilizing TOMRA's global footprint. Ultimately, our common ambition is to increase collection and recycling rates - turning more waste into valuable resources - by shaping tomorrow's recycling infrastructure," says Tove Andersen, President and CEO of TOMRA.

c-trace, founded in 2005, offers advanced solutions that combine software and hardware modules to digitize and improve the process for waste management operations. As municipalities and industries increasingly seek to reduce inefficiencies and comply with stricter environmental regulations, demand for these solutions is rising. Through its innovative solutions and strong customer base, c-trace has a leading position in Germany, which is the largest market in Europe. Its strong focus on new AI driven capabilities has generated market interest and is opening new market opportunities in the segment.

TOMRA's acquisition of c-trace aligns with the strategy outlined during the 2024 Capital Markets Day where the company said they would seek to develop adjacent business building, also through M&A. The addition of c-trace will support TOMRA's goal of driving additional profitable growth and diversifying its revenue streams while broadening its market impact.

c-trace is attractive to TOMRA for three main reasons. Firstly, the market c-trace operates in - digital waste management solutions - demonstrates strong growth and profitability. Secondly, this adjacent market fits TOMRA's positioning and is an area where TOMRA can create additional value. Finally, c-trace is an ideal entry point into this market due to its leading position.

Employing around 120 people, c-trace generates 80% of its sales in Germany and has shown annual growth of more than 15% in the last years. The company's revenues in the last twelve months amounted to EUR 21 million with 23% in EBIT margin (adjusted).

Transaction details

TOMRA will initially acquire 80% of the shares in c-trace, with an option for the remaining 20%, which are held by the founders, after 2 years. The acquisition is expected to be immediately accretive and generate strong capital returns to TOMRA - supporting the targets set out at TOMRA's Capital Markets Day.

Analyst and investor call

Analysts and investors are invited to participate in a Q&A session with CFO Eva Sagemo and Head of IR Daniel Sundahl about the transaction on Friday, 25 October at 08.30-09.00 CEST. Please register for the TEAMS Webinar here (https://events.teams.microsoft.com/event/70d08eef-8a65-4e24-959c-337724137868@4308d118-edd1-4300-8a37-cfeba8ad5898).

Asker, 24 October 2024

TOMRA Systems ASA

For questions, please contact:

Eva Sagemo, CFO: +47 934 39 911
Daniel Sundahl, VP Head of IR: +47 913 61 899