Van Leer Metallized Products Ltd Acquired
API Group PLC
4 April 2000
API EXPANDS IN METALLISED PAPER
API Group plc ('API') announced today the acquisition of the business and
certain assets of Van Leer Metallized Products Limited, a subsidiary of
Huhtamaki Van Leer OYI (the 'Vendor') for a cash consideration (subject to a
net asset adjustment) of £1.0 million, payable on completion.
The acquired business is based in Caerphilly, Wales and is engaged primarily
in the production of metallised paper for two main product areas, labels
(primarily for the beer market) and inner-liners for cigarette packets. In
the year ended 31 December 1999, the acquired business generated sales of
£18.8 million and a loss before interest and tax of £1.5 million. As at 31
December 1999, attributable net assets of the acquired business were £3.8
million.
This acquisition complements API's current activities in metallised paper and
will provide the Group with a leading position in this market in Europe.
Opportunities to enhance revenues and improve costs and benefits from
economies of scale are expected.
Commenting on the acquisition, Michael Smith, API's Chief Executive, said:
'API is committed to the continued development of its position as a leading
global supplier of metallic effect products. This acquisition, in
conjunction with our own operations in Macclesfield, provides the Group with
greater critical mass in the European metallised paper market and the
capacity for future growth in this expanding sector.
'We have identified a number of areas where we believe productivity
improvements can be made and we anticipate that the Caerphilly business can
become profitable quickly as part of a group focused on the metallised paper
market. The acquisition is an excellent fit and will allow us to capitalise
on our investment in this growth area.'
Enquiries:
Michael Smith, Group Chief Executive
API Group plc Tel: 01625 610334
Tim Spratt, Director
Financial Dynamics Tel: 020 7831 3113
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