The London-based company FormFormForm Ltd which launched kneadable glue product, Sugru, is set to become a fully-owned subsidiary of German firm, Tesa SE. Thus.
Adhesive manufacturer Tesa says the acquisition “strengthens its market position in self-adhesive products for consumers”. However, it is reported that investors in FormFormForm Ltd will lose out, as the deal only values the company at nine pence per share, meaning Tesa will acquire the firm for around £7.6million (8.6million Euros). A crowdfunding campaign in 2015, when FormFormForm Ltd raised 355% more than its original target, valued the business at £27million.
FormFormForm Ltd holds all rights to the internationally-patented mounting solution, Sugru - an easy-to-use and versatile, kneadable and malleable special adhesive that is based on silicone.
The Hackney-based manufacturer, which employees around 60 people, achieved sales of 5.6million Euros in 2017. It has sold 10 million mini pack of Sugru worldwide to date and reported an average year-on-year (YOY) growth rate of +32% each year from 2013 to 2016, with forecasts that its growth would increase to +50% YoY each year to 2019.
Whilst Sugru sells its products in retail outlets in Europe, USA and Canada, with listings in B&Q and Target, more than 50% of its sales last year were realised online.
Tesa executive vice-president - consumer & craftsmen, Dr Alexander Bochert said: "The company's expertise in online commerce will give us important momentum in the implementation of our digital strategy.”
Despite the strong sales figures, it is understood that an expected £4 million debt financing facility from Clydesdale and Yorkshire Bank (CYBG) did not come through last November, which left the company in financial difficulty. As a result, 51% of FormFormForm’s shareholders are understood to have accepted Tesa’s offer to buy.
Sugru inventor and FormFormForm CEO Jane Ni Dhulchaointigh, who is expected to stay on with the company following the acquisition, said of the deal: “Behind Sugru, there is an inventive product and the idea of inspiring ever more people to engage in creating, fixing and repairing, To achieve this goal, over the past years we’ve created an international business with a strong and highly-motivated team. Under the umbrella of Tesa SE, with its strong brand and global infrastructures, we now have the chance to accelerate our development and to put it on an even broader foundation.”