Bemis, the US-based flexible packaging company, has reached agreements to sell its global pressure sensitive materials business and to acquire Walki Films division.
The pressure sensitive materials business, (known as Mactac), will be sold to UPM-Kymmene for $420 million (€430m). In a separately negotiated transaction, the Walki Films division of UPM-Kymmene will be bought for $70 million.
Mactac recorded global net sales of $491 million in 2001. The sale of Mactac includes all elements of Bemis' global pressure sensitive materials business including manufacturing facilities in Columbus, Indiana; Hopkins, Minnesota; Nellis, Nevada; Stow, Ohio; Scranton, Pennsylvania; Soignies, Belgium; and San Luis Potosi, Mexico.
UPM-Kymmene is a leading paper company, focused on printing papers, wood products, and converting materials, including its existing international pressure sensitive materials subsidiary, Raflatac.
Walki Films is a major European manufacturer of packaging films, specialising in high barrier vacuum and modified atmosphere packaging used primarily for packaging meat, cheese, and other fresh foods. With annual sales of about $120 million, Walki Films will more than double the current level of Bemis' flexible packaging sales in Europe.
As part of Bemis, Walki Films will continue to operate from their manufacturing plants in Valkeakoski, Finland and Epernon, France.
Commenting on these pending transactions, Jeffrey Curler, president and CEO of Bemis, said, "Today's announcement represents an opportunity for our Mactac business to be part of UPM-Kymmene's broad line of converting material products and signals a bright future for the Mactac business and employees. The sale of this business segment will allow us to focus all of our resources on our flexible packaging business and pursue the significant growth opportunities that we see in those markets. The addition of Walki Films will match up well with our strategy to broaden our product offering to the European meat and cheese marketplace. Walki Films will enhance our market size and, with their nylon technical capabilities, give us the opportunity to introduce our North American products to Europe."
Bemis Company is a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, manufacturing, and other companies worldwide. Founded in 1858, the company had 2001 sales of $2.3 billion.
With a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing and converting, and pressure sensitive adhesive technologies, Bemis is based in Minneapolis, Minnesota, and employs 11,000 individuals in 49 manufacturing facilities in eight countries around the world.