Bemis Co. Inc. has successfully concluded the sale of its global pressure-sensitive materials (MACtac) business to a California-based private equity firm, Platinum Equity, for $170 million. The proceeds will be redeployed to fund the growth of its flexible packaging business.
Bemis Finalizes Sale of MACtac Business for $170M
Neenah, WI-based Bemis is a major supplier of flexible packaging, catering to leading food, consumer products, medical and pharmaceutical companies globally. The flexible packaging business contributes roughly 89 percent of its total revenues. The Pressure Sensitive Materials segment, through which Bemis supplied pressure sensitive adhesive coated materials worldwide, accounts for the balance 11 percent. The business segment has manufacturing facilities located in Scranton, PA; Columbus, IN; San Luis Potosi, Mexico; Soignies, Belgium; and Genk, Belgium, along with offices located in Stow, OH, and a worldwide sales and distribution network.
In 2013, the Pressure Sensitive Materials segment reported sales of $553.2 million, which declined 0.4 percent year over year as lower unit sales of value-added graphic and technical products negatively impacted the sales mix during the year. In the first half of fiscal 2014, the segment’s sales increased 1.6 percent to $287 million. Favorable foreign currency translation, higher selling prices and a favorable sales mix of value-added graphic products were offset by lower volumes. The Pressure Sensitive Materials business was classified as discontinued operations in Bemis' financial statements during the third quarter of 2014.
In line with this divestiture initiative, Bemis divested its Paper Packaging Division in March this year. The division had generated annual net sales of $160 million in 2013. Net proceeds from the sale totaled $79.8 million, which was redeployed to repurchase 2 million shares during the first half of 2014.
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Bemis Co. Inc.