LiqTech International Inc has signed a share purchase agreement to acquire BS Plastic A/S, a specialized plastics manufacturer based in Denmark.
The acquisition will allow LiqTech to in-source certain components of its proprietary ceramic silicon carbide water filtration systems for closed loop marine scrubber applications.
BS Plastic was founded in 1958 as a provider of machined and welded plastic parts and is currently a supplier of plastic components to LiqTech. Recently, BS Plastic has focused on parts for the prepress, UV and aquaculture market segments.
“We are excited to advance one of the key components of our margin optimization program – the in-sourcing of certain core manufacturing activities,” said Sune Mathiesen, CEO of LiqTech International. “Upon closing of the acquisition, LiqTech will immediately in-source the manufacturing of plastic tanks and machined plastic products for its water filtration systems. We expect the payback to shareholders to be relatively short on this investment, based on cost savings and profit from BS Plastic´s existing operations. We are excited to integrate the BS Plastic team into the LiqTech Group and look forward to further leveraging their capabilities in the years to come.”
The acquisition is expected to close in the third quarter of 2019.