TOMRA Systems

M&A Activity • Oct 24, 2024

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

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

TOMRA has acquired 80% of the shares in c-trace GmbH, a German leader in digital

waste management solutions.

"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

TOMRA develops solutions that enable circular economies and optimal resource

productivity through automated identification, collection, grading, and sorting

of resources. We optimize how resources are obtained, used, and reused - turning

waste into valuable resources. Our vision is to lead the resource revolution and

enable a world without waste.

TOMRA has more than 110,000 installations in over 100 markets worldwide and had

total revenues of EUR 1,288 million in 2023. The Group employs 5,400 people

globally and is publicly listed on the Oslo Stock Exchange. (OSE: TOM). For

further information about TOMRA, please visit www.TOMRA.com

This stock exchange notice contains inside information which is subject to the

disclosure requirements in article 17 of the Market Abuse Regulation.