Swedish company Nolato has signed an agreement to acquire US-based GW Plastics, which manufactures complex injection-moulded thermoplastic and silicone solutions mainly for medical device firms.

The acquisition price, including contingent consideration, is estimated to be approximately $240m.

GW Plastics was founded in 1955 and has annual sales of approximately $216m and an EBITA margin of nearly 7%.

Nolato expects the acquisition to strengthen its global position in Asia, Europe and North America.

Nolato president and CEO Christer Wahlquist said: “GW Plastics is a well-managed, well-invested company that is a great fit with our corporate culture.

“The business, which has historically demonstrated healthy organic growth, has extensive know-how in engineering and technology. Together with its size and geographic presence, this provides an ideal strategic combination with Nolato and enables significant market synergies over time.”

Headquartered in Vermont, GW Plastics employs approximately 1,100 people at its seven manufacturing plants in the US, Mexico, China and Ireland.

The company has a broad customers base in the pharmaceutical, healthcare and automotive industries.

The acquisition is expected to be closed next month after obtaining US regulatory approvals.

Following the acquisition, the business will be consolidated into Nolato. The existing management team of GW Plastics will remain with the business post-acquisition.