New owner on tap for extruded netting firm DelStar

By Michael Lauzon
Correspondent

Published: November 20, 2013 6:25 pm ET
Updated: November 26, 2013 11:06 am ET

Related to this story

Topics Mergers & Acquisitions, Extrusion

Tobacco-market intensive firm Schweitzer-Mauduit International plans to acquire a stake in thermoplastics filtration specialties.

SWM announced Nov. 18 that it plans to buy DelStar Inc. of Middletown, Del., now majority owned by private equity company American Capital Ltd. of Bethesda, Md. The purchase price agreed to is $231.5 million subject to adjustments. SWM of Alpharetta, Ga., expects to complete the deal by year end.

DelStar has annual sales of about $110 million, mainly in the United States but it also is growing in Asia around its Suzhou, China, operation. Its major sales are in water filtration applications and reverse osmosis. It also sells specialty filtration products for industrial markets.

"The acquisition of DelStar creates an attractive growth platform in an adjacent business area for SWM as we greatly expand our presence in advanced materials, focused in large part on filtration," noted SWM Chairman and CEO Frederic Villoutreix in a news release.

Villoutreix said DelStar's financial performance is attractive. Sales and EBITDA have been growing at about 10 percent a year.

"The outlook for DelStar remains robust, with global demand for drinking water infrastructure expected to remain high for the foreseeable future," Villoutreix explained. But SWM isn't giving up on tobacco products like cigarette and cigar papers and reconstituted tobacco leaf.

SWM "remains highly committed to our core tobacco operations and customers, as tobacco will continue to represent the majority of our assets, revenue and cash flow," he stressed.

Other SWM markets are specialty industrial and printing papers and processed flax and hemp straw.

SWM logged sales of $185.3 million for the third quarter ended Sept. 30, down 5 percent from a year earlier. Operating profit fell 15 percent to $41.8 million. In reporting the results, officials stated tobacco is a challenging market and SWM plans diversification over the long term.

DelStar products include extruded netting, apertured films, melt-blown media, engineered composites, extruded cores, filtration specialties, and products for health care and a range of industrial applications. American Capital bought a majority stake in DelStar in 2005 for $114 million.

"The combined resources of both enterprises will strengthen our ability to pursue promising opportunities in our base business as well as potential acquisitions," stated DelStar President and CEO Mark Abrahams in a news release.

The boards of directors for both firms have approved the transaction.

DelStar’s manufacturing plants are in Middletown; Austin, Texas; Richland, Pa.; El Cajon, Calif., and Suzhou. It runs sales offices in Shanghai, China, and Bristol, England.


Comments

New owner on tap for extruded netting firm DelStar

By Michael Lauzon
Correspondent

Published: November 20, 2013 6:25 pm ET
Updated: November 26, 2013 11:06 am ET

Post Your Comments


Back to story


More stories

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

TMI has new private equity owner

October 27, 2014 2:03 pm ET

Pittsburgh-based TMI International LLC, a maker of PVC-based film, panel and sheet products as well as PVC-coated curtains and screens, has been...    More

Image

Deal puts Convergence Packaging under Comar's umbrella

October 24, 2014 2:00 pm ET

Convergence Packaging Holdings LLC, itself a product of mergers, now is joining together with Comar LLC.    More

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

Investment firm buys Ontario cap molder

October 23, 2014 2:01 pm ET

A company whose varied interests include food and refrigerated transportation businesses is now moving into plastic caps.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events