WEBAC ACQUISITION FAQ

For our valued customers, agents, suppliers and industry peers

What are we announcing?

On 1 August, 2018, Simpson Technologies (Deutschland) GmbH, a subsidiary of Simpson Technologies Corporation in the USA, acquired Webac Gesellschaft für Maschinenbau mbH (Webac) in Euskirchen, Germany together with its subsidiaries Webac Maskin AB in Stockholm, Sweden and Webac s.r.o. in Pribram, Czech Republic.

Who is Webac Gesellschaft für Maschinenbau mbH (Webac)?

Webac is a leading German company that provides customized solutions for the foundry, oil, gas and process industries in Europe and surrounding markets. Webac brings more than 85 years of experience in the foundry industry, dating back to 1931 with the founding of the AB Westin & Backlund company in Stockholm, Sweden. The growing demand for machines and complete plants led to the founding in 1962 of a German subsidiary, Webac Gesellschaft für Maschinenbau mbH, with its headquarters in Euskirchen. It quickly grew to become a foundry machine seller for all of Europe – one with an ever-expanding product range and respected reputation.

Who is Simpson Technologies Corporation?

Simpson Technologies, founded in 1912, is a five generation family business that concentrates on designing, engineering and manufacturing technology and services for the worldwide metal casting and chemical process industries. Primary products include green sand batch and continuous mixing equipment, molding sand coolers, on-line mixer controls, core sand preparation systems, shell sand preparation plants, sand reclamation systems, sand laboratory equipment and foundry system design, engineering and automation systems. Simpson Technologies has operations in Aurora, IL USA; Baar, Switzerland; Alfeld, Germany; Kolkata, India; Euskirchen, Germany; Pribram, Czech Republic and Stockholm, Sweden. This latest acquisition marks the second for Simpson Technologies in Europe, following the 2008 acquisition of the Georg Fischer (+GF+) sand testing equipment product line from DISA Industrie AG.

Who is Simpson Technologies (Deutschland) GmbH?

Webac was purchased by Simpson Technologies (Deutschland) GmbH, located in Alfeld, Germany. This is a newly formed subsidiary of Simpson Technologies Corporation.  The employees of Simpson Technologies (Deutschland) GmbH have always lived in Germany but worked with the Baar, Switzerland office.  We are proud that the Germany location expands our presence in the European market which began in 1931.

Why did Simpson choose to acquire Webac?

The Webac acquisition is part of our growth strategy to expand our European presence, which we’ve had for almost 90 years, and further our ability to provide local-level development, service and support to our customers. Webac has a solid reputation in developing high quality products as well as a brand name that is well-known, established and respected in Europe. In addition, Webac provides a local European service base, making it more appealing for European customers to purchase Simpson products knowing service and support are generated locally versus the U.S. Finally, Webac is located in Germany, which is the fourth largest foundry market in the world.

How will the acquisition benefit Webac customers?

This acquisition will provide Webac customers with a broader product line of Simpson products, as well as give rise to new, innovative products based on global customer feedback and requirements. In addition, Webac customers will benefit from the backing of Simpson – a family-owned company with leadership that truly cares about its customers and roots deeply planted in the foundry community – to support Webac product development. All products will continue to be supported long-term for servicing, calibration and replacement of parts.

What will be the near-term changes for European customers of both companies?

This acquisition means we are strengthening our level of service and support in Europe. For current Webac customers, that means nothing changes except more resource support. For current Simpson customers in Europe, we will establish a dedicated local service team, after formal service training is provided. The training leverages the unique synergies and state-of-the-art knowledge, regarding process technologies and foundry equipment, by the service staff in both organizations thus significantly reducing the learning curve for the service training. For Simpson European customers this equates to fewer suppliers to manage and a true one-stop product and support source.

How does the acquisition benefit Simpson customers OUTSIDE of Europe?

This acquisition reinforces our ability to provide quality, timely service for customers throughout Europe, Scandinavia, Middle East, Russia and Africa. Our expansion gives customers worldwide new access to Webac products such as those designed for sand proppants and sand coating. Technologies including core sand preparation, chemically bonded sand preparation and reclamation will be evaluated for potential further development. In addition, the acquisition helps us achieve economies of scale and underscores our stability and longevity in this market, assuring that customers’ investments are safe and that future support will remain uninterrupted.

What synergies will exist as a result of this acquisition?

This acquisition will drive innovation, enabling continued excellence and high quality products with faster customer response. We anticipate that it will take a few months for European customer service personnel to be fully up and running following training, but given the synergy between the two companies’ products and knowing that the service people are already educated in regards to similar technology that Simpson sells, we do not anticipate the timeframe to be lengthy. One example of similar technology is both companies’ relationship to Beardsley & Piper LLC. Formerly, Webac was a licensee of Beardsley & Piper selling the Speedmullor batch mixer.  In 1998, Simpson Technologies Corporation acquired Beardsley & Piper which included the Speedmullor batch mixer.

Does this acquisition pave the way for future growth in Europe?

This acquisition affords an immediate opportunity to introduce additional product lines to European customers, while providing a foundation for significant future growth both inside and outside the foundry industry, such as the chemical process industry. Immediately, our Simpson Analytics sand testing equipment solutions will allow us to meet the needs of new customers and further solidify our value with existing customers. In the near future, the Simpson Multi-Mull^®, Simpson Mix-Muller^® and Simpson Pro-Claim^® product lines will be re-configured to meet European compliance requirements.

Do you anticipate new product design to address customer needs as a result of the acquisition?

We will make design changes to make more Simpson products available in the European market. In the future, some of product lines that will be modified to meet European compliance requirements include the: Simpson Multi-Mull^®, Simpson Mix-Muller^® and Simpson Pro-Claim^®. As we progress, additional changes may arise. In the end we see this as a collaboration of both companies, which will ultimately benefit both sets of customers and support new innovation worldwide.

What is the formal organizational structure? 

Simpson Technologies (Deutschland) GmbH is a wholly owned subsidiary of Simpson Technologies Corporation in Aurora, IL USA.

Webac Gesellschaft für Maschinenbau mbH in Euskirchen, Germany is now a subsidiary of Simpson Technologies (Deutschland) GmbH in Alfeld, Germany.

Webac Maskin AB in Stockholm, Sweden and Webac sro in Pribram, Czech Republic are both subsidiaries of Webac Gesellschaft für Maschinenbau mbH.

Can you tell me about the Webac logo and is the legal name “Webac Simpson Group”?

The new Webac logo is meant to build on the strong Webac brand name and connect it to Simpson Technologies using our highly recognizable Scottish bagpiper logo. No, “Webac Simpson Group” is not a legal company name. Simpson Group is more of a tag line to represent the Simpson family of companies and is used as the email domain for those companies. Webac’s legal name is Webac Gesellschaft für Maschinenbau mbH but will continue to be referred to informally as Webac.

How does this acquisition promote sustainability?

Both Simpson and Webac have sand reclaimers within their product lines, which help ensure sand reuse for a reduction in waste that can impact the earth and reduce the local-level, carbon footprint. In addition, Simpson mixers use less energy than competitive mixers.

Will Webac be moving to the U.S. as a result of this acquisition?

The company will remain in the same German location as part of the Simpson family, dedicated to serving the European market.

Will Webac maintain their own online presence?

Yes.

What is Simpson’s involvement in the industry?

In Europe, Simpson supports the European Foundry Equipment Suppliers Association (CEMAFON), Association of German Mechanical and Plant Engineers (VDMA), German Foundry Association (BDG) and Swiss Foundry Association (GVS). In the U.S., the last four Simpson Technology Corporation Presidents have also served as President of the American Foundry Society (AFS). Simpson has been a significant contributor to the Foundry Educational Foundation (FEF) every year since Simpson’s founding in 1947 – totaling more than $805K in support and ranking Simpson in the highest level of corporate donors.