Tomra acquires digital waste management solutions provider C-Trace GmbH
Toma has acquired 80% of the shares in C-Trace GmbH, a German leader in digital waste management solutions.
C-trace was founded in 2005 and offers software and hardware solutions for the digitalisation and improvement of waste management processes. The strong focus on new AI-driven functions has attracted market interest and is opening up new market opportunities in this segment.
“This allows Tomra to broaden our offering in the waste management and recycling space and adds new digitalisation 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 utilising Tomra’s global footprint. Ultimately, our common ambition is to increase collection and recycling rates – turning more waste into valuable resources,” said Tove Andersen, President and CEO of Tomra.
The acquisition is in line with the strategy presented at the 2024 Capital Markets Day, where the company stated that it would also seek to develop adjacent businesses through mergers and acquisitions. The acquisition shall support Tomra’s goal of achieving additional profitable growth and diversifying its revenue streams while increasing its footprint in the market. The market in which C-Trace operates – digital waste management solutions – is showing strong growth and profitability. Also this adjacent market fits Tomra’s positioning and is an area where Tomra can create additional value. Finally, C-Trace’s leading position makes it an ideal entry point into this market.
C-Trace employs around 120 people, generates 80% of its sales in Germany and has experienced annual growth of more than 15% in recent years. The company’s turnover in the last twelve months totalled 23 million US dollars with an EBIT margin of 23% (adjusted).
Tomra will initially acquire 80% of the shares in C-Trace, with an option to acquire the remaining 20% held by the founders after 2 years. The acquisition is expected to be immediately accretive and generate strong returns on capital for Tomra, supporting the objectives outlined at Tomra’s Capital Markets Day.
