Canadian label manufacturer CCL industries will acquire the Treofan Americas business from Italian investor group M&C S.p.A., owner of Treofan Holdings Group GmbH, for $255 million.
Treofan Americas, a leading producer of biaxially oriented polypropylene (BOPP) film, posted $212 million in sales last year. Treofan’s production facility in Zacapu, Mexico, has 300 employees and a capacity of 60,000 tons. Nearly two-thirds of Treofan’s sales are made in the U.S., fulfilled at a sales office and distribution center in North Carolina. The remaining sales come from Latin America.
In late 2018, 10 state-of-the-art BOPP extrusion lines will be installed at the Mexico facility, requiring a significant facility expansion. The addition will increase capacity by 30,000 tons. CCL agreed to reimburse M&C for all cash capital expenditures made for this $65 million project.
M&C will maintain Treofan’s European business through Treofan Germany GmbH & Co. KG and Treofan Italy S.p.A. CCL will operate the acquired business under the Innovia brand.
Treofan CEO Walter Bickel said the company will use the sale proceeds to further develop production sites in Europe.
“We will advance our product portfolio into speciality films and also strengthen our research and development in this area,” he said.
CCL President and CEO Geoffrey T. Martin said the acquisition will give Innovia a “solid strategic footprint” for BOPP films in North America and Europe.
“The business will be combined with Innovia in the Americas under a common brand and the leadership of Guenther Birkner, who heads our label interests globally in the food and beverage and healthcare and specialty markets, as well as this important new strategic initiative in the materials science arena,” he said. “I’d like to take this opportunity to acknowledge the deeply experienced Treofan Americas people; we are excited about the prospect of them joining our company and look forward to their contributions as we move forward with this exciting new initiative.”
The purchase is set to close in the second quarter of 2018, pending regulatory approvals.