TOMRA: Acquisition of leading digital waste management solution provider c-trace
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, 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.
“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.
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% over the last years. The company’s revenues in the last twelve months amounted to EUR 21million with 23% EBIT margin (adjusted).
“We look forward to joining the TOMRA family and see this as the optimal home for the next phase in the growth journey of c-trace. Together with TOMRA we can unlock further value through collaborating on innovation, but also through leveraging TOMRA’s international footprint and customer base to reach new customers in new geographies,” the founders of c-trace, Helmut Ziegler, Torsten Olschewsky, and Michael Eikelmann, say in a joint statement.
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.
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TOMRA
TOMRA was founded in 1972 and works with transforming how business and society obtain, use and reuse the planet’s resources. The company’s advanced collection and sorting technology supports the transition to a circular economy, optimizes resource use and minimizes waste in the food, recycling, and mining industries.
TOMRA has approximately 110,000 installations in over 100 markets worldwide and had total revenues of about 1,288 million EUR in 2023. The Group employs 5,400 globally and is publicly listed on the Oslo Stock Exchange. The company headquarters are in Asker, Norway.