Huntsman offers $116 million to buy AET
SALT LAKE CITY — Huntsman Packaging Corp. of Salt Lake City has offered Aug. 7 to buy Applied Extrusion Technologies Inc. of Peabody, Mass., for about $116 million.
Huntsman offered $10.50 per share, a price that represents a premium of 48 percent above AET's average trading price in the past 50 days. AET has until the close of business Aug. 17 to respond to the offer. AET officials had no comment.
The move would allow Huntsman, which primarily produces polyethylene and PVC film, to enter the oriented polypropylene film market. AET is North America's second largest OPP film maker, behind Mobil Chemical Co. OPP film accounts for 81 percent of AET's sales. AET also is in the process of expanding its OPP film holdings by buying the films business of PP giant Montell NV of Hoofdoorp, the Netherlands.
``This is a whole new growth platform for us,'' Olsen said in an Aug. 7 telephone interview.
Olsen said the move was not a hostile takeover attempt and was not ``a bolt out of the blue.''
News of the Huntsman offer shot AET's stock price up to $9.125 per share at the close of trading Aug. 7, a one-day jump of 24 percent. It had been trading for as little as $7 per share earlier in the day.
Huntsman Packaging ranked eighth in Plastics News' 1997 ranking of North American film & sheet manufacturers, with $590 million in sales. AET ranked 21st with $240 million in relevant sales. The company's total sales were $262 million.
AlliedSignal makes takeover bid for AMP
HARRISBURG, PA. — Electronic-connector maker AMP Inc., which has injection molding, insert molding and extrusions processes, finds itself defending against an unwanted takeover attempt.
Diversified manufacturer AlliedSignal Inc. of Morristown, N.J., launched an unsolicited bid Aug. 4 to acquire troubled AMP for $44.50 a share, or $9.8 billion in cash. On Aug. 5, Standard & Poor's placed both companies' ratings on CreditWatch. AlliedSignal and AMP trade on the New York Stock Exchange.
AMP of Harrisburg makes electronic, electrical and electro-optic connection devices, interconnection systems and connector-intensive assemblies. AMP has a leading market position supplying parts for personal computers, cable television systems, appliances and tools, but has had economic woes lately, forcing job cuts and factory closings.
AMP had 1997 sales of $5.75 billion. AlliedSignal's 1997 sales were $14.5 billion.
Moll purchases molder Gemini Plastics
KNOXVILLE, TENN. — Moll Industries Inc. of Knoxville has acquired Gemini Plastics Services Inc. of Davie, Fla.
George Votis, Moll chairman and chief executive officer, said the late-July deal strengthens his firm's position in medical and telecommunications markets. Votis said Moll plans to expand the Gemini plant's capacity, but he provided no details.
Gemini had sales of $21 million last year. It runs 42 presses with clamping forces to 330 tons, said Crugar Tuttle, its president and former part-owner. Gemini has clean-room molding and assembly and builds its own molds, Tuttle said. Its other major market is military components.
Just before the Gemini deal, Moll merged with Anchor Advanced Products Inc. to create a molding giant with $415 million in annual sales and 26 plants in the United States and Europe.
Tuttle said two of Gemini's partners decided to retire. However, Bob Hayberg and Carl Hunt, who founded the firm, will stay with Gemini. Tuttle will remain president of the division.
Hosokawa buys Conn. granulator maker
NEW YORK — Hosokawa Micron International Inc., which owns blown film machinery maker Alpine American, has purchased Connecticut granulator maker Polymer Systems Inc.
A spokesman said Hosokawa will continue to run Polymer Systems' 30-employee plant in Berlin, Conn., and retain management. Polymer Systems has annual sales of about $5 million.
Isao Sato, Hosokawa Micron's president and chief executive officer, said the Polymer Systems granulators complement Alpine's granulators, which are used in plastics recycling lines.
Hosokawa of New York bought Polymer Systems from its president, Josef Holthoff. Holthoff will remain with Polymer Systems.
Alpine of Natick, Mass., also makes monolayer and coextrusion blown film lines, film winders and take-off equipment, bag-making machines, extruders and sheet lines.