Weener Plastics Group B.V.

Overview Key strengths Key risks Strong niche positions in deodorant and food packaging. Fragmented and competitive industry. Longstanding relations with blue-chip customers supported by technical expertise. Input cost volatility (i.e., resin prices and energy). High barriers to entry and customer loyalty thanks to the customers' co-investment in and co-ownership of the customized molds. Limited scale and relatively high customer concentration. Capital-intensive industry. In May 2022 the group sold its Russian operations for a minimal price and a multi-year earn-out to a Dubai-based group. The Russian businesses accounted for around 11.9% of net sales and 17.5% of company-adjusted EBITDA. Although some customers will shift their product sourcing from Weener?s Russian plants to its European plants, the disposal will likely lead to

...Key strengths Key risks Strong niche positions in deodorant and food packaging. Fragmented and competitive industry. Longstanding relations with blue-chip customers supported by technical expertise. Input cost volatility (i.e., resin prices and energy). High barriers to entry and customer loyalty thanks to the customers' co-investment in and co-ownership of the customized molds. Limited scale and relatively high customer concentration. Capital-intensive industry. We anticipate a modest decline in EBITDA due to the sale of its Russian operations. In May 2022 the group sold its Russian operations for a minimal price and a multi-year earn-out to a Dubai-based group. The Russian businesses accounted for around 11.9% of net sales and 17.5% of company-adjusted EBITDA. Although some customers will shift their product sourcing from Weener's Russian plants to its European plants, the disposal will likely lead to some decline in both sales and EBITDA in 2022. Annual earn-outs from the sale are expected...

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