Reka eyes M&As for next phase of growth

Aura, Finland – Reka Industrial has set out an ambitious plan to expand its turnover to become a ‘medium-sized listed company’ over the next five years.

To achieve that, the group, which currently only consists of Reka Rubber, is considering merger & acquisition arrangements, the Finnish group announced 27 May.

The move follows the divestment of Reka Cables to Nexans Group last year, which Reka said created an opportunity to develop business “from a new perspective based on strong ownership and entrepreneurial activity.”

The group’s board of directors has drawn up "a set of criteria" for the next stages of the strategy and has chosen Sisu Partners as the financial advisor.

”The framework for the company's future strategy has been chosen and we are now continuing the work together with Sisu Partners,” said Leena Saarinen, chair of the board of directors of Reka Industrial.

Separately, Reka announced the departure of the head of its rubber division Tero Manner on 11 June.

The group is set to launch a recruitment process to find a new managing director for the its subsidiary Reka Kumi Oy.

In the meantime, Sari Tulander, the president and CEO of Reka Industrial, will act as managing director of Reka Kumi in addition to her own duties.

“The rubber segment continues to emphasise on transferring the cost increases to customer prices and developing productivity and profitability,” said Saarinen.

With the change of leadership, she added, “we seek momentum for efficiency measures and the development of the conditions for future growth."

Among other measures, Saarinen said "a profitable product offering and efficient production technology" could help the growth of the rubber segment.