Official: Veka Have Bought Bowater Systems

After days of huge speculation and rumor, it has been announced today that Veka have bought Bowater Systems.


The announcement comes after days of speculation, both here and on the Twittersphere, about whether the deal was done. 


Well, via a couple of sources, plus three Twitter accounts now saying the same information, it's clear to see that this information is accurate. One of my sources has also told me that there are no plans to make changes until into the last quarter of the year, once Veka has had time to observe the business. This should come as some medium-term comfort to those who may have been worried about job losses.


It is expected that both the Veka and Halo brands will continue, at least during the review period which is to take place over the coming months.


As regards to the value of the deal, I've had a couple of different estimates, but I will only publish that information once I know what the confirmed amount is. You can privately message me if you wish to know the two estimates I have been given.


For a few years now, the industry has been of the opinion that the extrusion market was over crowded, and the consolidation was needed to allow for better trading. Well, I think it's fair to say that the period of time where we will see buyouts and mergers has arrived. The question is how many more will there be?


I have spoken with one of my contacts, and they expect things to at least remain the same where they work, or even improve. They like the idea of someone of the likes Veka coming in with their expertise and financial stability. They see this as a chance to improve things across the board.


I also want to apologize to those who left comments for the first post regarding the take over. The information provided was excellent, but due to the accurate nature of the comments, I felt it best to wait until a formal announcement had been made until I publish them. They should be on the site soon.


My personal opinion of the buyout initially is a good one. Veka has the cash to be able to push forward product development, re-structure the business in a more efficient way, and provide stability. However one thing they may want to stay away from is losing the Halo brand in any way. Halo customers are very loyal. If customers see any dip in quality, customer care or get the impression that the Halo brand might disappear, there will be a lot of very unhappy customers, and consequently a lot of business lost.