Drylock Technologies NV (“Drylock”) announces the acquisition of 100% of the business of Presto Absorbent Products Incorporated (“PAPI”) in the United States. All of the employees have been hired by Drylock’s whollyowned US-based subsidiary Drylock Technologies Ltd (“Drylock US”), the transaction was successfully executed.
Drylock, a Belgian family owned manufacturer of personal absorbent hygiene products, such as baby diaper, feminine hygiene and adult incontinence products has acquired the PAPI business in United States. This acquisition is in line with Drylock’s growth strategy and extends its current manufacturing and sales footprint beyond Europe and Russia. This presence in the Americas supports Drylock’s future expansion into the global personal hygiene market.
Bart Van Malderen, CEO of Drylock, quoted: “We are very proud to announce the acquisition of PAPI. It brings Drylock significant synergies, such as presence in the United States of America, further product portfolio expansion, access to a very attractive customer and manufacturing base as well as a highly professional and skilled management team. As also we are, PAPI is heavily focused on innovation and quality and we find many, if not all, of our core values reflected in PAPI. The conveniently located Eau Claire facility, which is based in the state of Wisconsin, will act as Drylock US’s headquarter and we are looking forward integrating all employees, facility and business in Drylock.”
PAPI, a daughter company of National Presto Industries, had been originally formed to acquire the assets of a struggling baby diaper company in 2001, whereas at present it reflects a very wellrespected innovator and manufacturer of adult incontinence articles, serving preeminent institutional and retail distributors. Given the acquisition by Drylock, the existing customers of PAPI will have instant access to the entire absorbent hygiene product portfolio of Drylock, which entails the complete assortment of baby, feminine hygiene as well as incontinence care products. Drylock is looking forward to meeting up with all stakeholders and is dedicated to ensure continuity of the existing business.
In describing the transaction, Maryjo Cohen, President of National Presto stated, “We are very proud of the strides our
absorbent product business has made in the last several years, but recognized that to move to the next level for full success, we needed to combine the operation with that of a major player in the industry.
This sale is a win-win for all parties involved. Those parties include not only the shareholders of Presto and the owners of Drylock but also the four other groups that are affected by this kind of transaction: our employees, our community, our customers and our suppliers. The acquisition affords Drylock with instant presence in the U.S. market, with a strong customer and manufacturing base. In turn it assures our employees of ongoing employment. The transaction provides Presto with a major tenant for its facility and secures for the Chippewa Valley an international player in the industry. In contrast to most acquisitions that typically reduce the number of competitors, the transaction actually broadens our customers’ choices by adding a significant and long term contender to the field. Our suppliers will enjoy the opportunity to increase their customer base through the addition of a new customer complete with the best introduction possible – their proven track records as PAPI suppliers.”
The entire transaction is valued at $71 million and includes substantially all of the assets and certain liabilities of PAPI. Drylock plans to operate the business in Eau Claire, Wisconsin, out of the current PAPI facility, which will serve as Drylock US headquarters under the Drylock Technologies Ltd name.