Polimoon opens purse strings for yet another acquisition

Norwegian-based processor Polimoon (Oslo) appears prepared to consolidate much of the European plastics processing industry under its own power. Since its April 2005 listing on the Norwegian stock exchange, the processor-serving the automotive, packaging, medical and other industries via injection and blow molding, thermoforming and rotomolding operations throughout Europe- has made three acquisitions.

The latest acquisition, announced Jan. 10, is the rigid packaging business of Rosti (Farum, Denmark). The purchase includes five processing facilities located in Neumünster, Witzenhausen, Görzke, Winsen (all Germany) and Glostrup, Denmark, and includes 290 employees. The divestment is scheduled for closure this month. The firms have agreed not to disclose the transfer price. The 5 factories generate an annual turnover of approximately €40 million. Not included are two PET blowmolding facilities, one each in Germany and Sweden, belonging to Rosti. Following the acquisition, Polimoon Group will have combined sales of €380 million and employ 2740.

Rosti''s rigid packaging operations process blowmolded and injection molded bottles, tubes and containers, especially for the household goods and personal care packaging segment, plus industrial packaging for chemical companies. The customer base is a blend of local and multi-national companies. According to Polimoon, profitability at the German operations is "satisfactory" while the Danish facility is unprofitable. Polimoon says it anticipates some costs will be incurred to restructure the Danish business. Polimoon already has two facilities in Denmark.

Following the divestment, the Rosti Group has 15 entities spread throughout Europe, North America and China; 13 belong to the Technical Plastics Division. The other two blow mold recyclable bottles for the Northern European mineral water and beverage market.

In a release Rosti identified Technical Plastics as its core division and one developing well. "Sales to global customers are growing, and during the last couple of years Rosti has established four new factories in China and Poland. A new large factory in Suzhou close to Shanghai in China is expected to be operational by the end of 2006," according to the statement.

Rosti says cash from the divestment will be used will strengthen its cash flow so it can reduce debt and consider expansion for its Technical Plastics division.

In mid-December 2005 Polimoon acquired injection molder Rim Tech, a 200-employee supplier to the automotive industry, for €5.8 million. Rim-Tech is located in Zlin, Czech Republic and had about €9 million in sales last year. On Nov.28, 2005 Polimoon announced its acquisition of a 70% share in Polish rigid packaging processor Lima-Pol and will acquire the remaining 30% by 2008. Last June Polimoon bought consumer packaging processor Grabor Plastics (Suffolk, England).