News

01 February 2024

Nimbus reaches agreement with Sumitomo to carve-out its subsidiary Lonstroff AG

Lonstroff AG is a subsidiary of Sumitomo and active in rubber parts for medical applications.

Nimbus reaches agreement with Sumitomo to carve-out its subsidiary Lonstroff AG

Sumitomo Rubber Industries, Ltd. today announces that it completed the share transfer of its shareholding in Lonstroff AG to Nimbus on January 31, 2024. Prior to this, in December 2023, Sumitomo concluded an agreement to assign all shares it holds in Lonstroff AG, its subsidiary for the manufacture and sale of rubber parts for medical applications headquartered in Switzerland to private equity fund Nimbus. Nimbus, headquartered in the Netherlands and also operating offices in Germany and the United Kingdom, is specialised in corporate carve-outs and is an ideal partner to take over the subsidiary of Sumitomo active in rubber parts for medical applications, active on a global scale and operating sites in Switzerland and Slovenia.

Background/purpose
The Sumitomo Rubber Group globally expanded the business of rubber parts for medical applications through the acquisition of Lonstroff AG, a manufacturer/seller of rubber parts for medical applications in Switzerland, in 2015 and the establishment of Lonstroff Medical Elastomers d.o.o as a new production base in Slovenia in 2017. Although Sumitomo had strived to improve productivity and product quality in Japan and Europe in a unified way, it decided to transfer the shares to Nimbus as it concluded that it would take a considerable long-term effort to improve the profitability of the company. Sumitomo believes that further business growth will be achieved under Nimbus. In its New Mid-Term Plan, the Sumitomo positions the period until 2025 as the period for “Selection & Concentration of Existing Lines of Business.” Sumitomo will continue to promote the concentration and utilization of resources in growth business to achieve the future development of the Sumitomo Group.