LONDON — A company created by former Borden Inc. European executives has purchased Rexam plc's Bulk Packaging Division for 21 million ($33 million). The deal includes fiber and plastic drum and bulk container operations in Britain, France, Germany, the United States and Mexico.
The Huntingdon-based division comprises eight manufacturing units that employ 1,000. In 1999 they achieved sales of 48 million ($75 million), with an operating profit of 3.3 million ($5.2 million), according to London-based Rexam.
The purchaser is Bulk Packaging Group BV of Naarden, the Netherlands. The firm was founded by Peter Swildens, who was managing director of Borden's European packaging operations for 15 years, and John Rimmer, formerly Borden's group director for rigid packaging.
Borden sold its extensive plastic packaging operations after it was purchased in 1994 by New York's Kohlberg Kravis Roberts & Co.
Swildens is now chief executive officer of Bulk Packaging, and Rimmer is chief financial officer.
The cash deal includes:
Intermediate bulk container producer Rexam Mulox Inc. of Macon, Ga., which has a second plant in Baxley, Ga.
IBC manufacturer Rexam Mulox de Mexico SA de CV of Matehuala, Mexico.
European IBC makers Rexam Mulox Ltd. of Stoke on Trent, England; Rexam Mulox GmbH of Eschborn, Germany, and Rexam Mulox SA of St.-Barthelemy-d'Anjou, France.
Rexam Harcostar Ltd., a blow molder of plastic drums and garden products in Huntington, England.
The deal also includes a British fiber drum manufacturer and a manufacturer of industrial polypropylene yarn, fabric and webbing.
Bulk Packaging Group will retain the old trade names but intends to reorganize its operations in two divisions. The drums division will include plastic and fiber container operations. The IBC unit, Mulox Holding International BV, will be based in Stoke on Trent.
Bulk Packaging Group wants to invest in the operations and expand them organically and through acquisitions, Rimmer said. He expects Bulk Packaging to announce acquisitions within the next year.
In addition to his duties as CFO, Rimmer is managing director of the drums division. Phil Bridge, former Rexam Bulk Packaging Division manager, is managing director of the Mulox International unit.
Rimmer said the fiber and plastic drum operations are leaders in the United Kingdom and have alliances in the United States and mainland Europe through license agreements.
Rexam sold the business to concentrate on its consumer packaging business, according to Chief Executive Officer Rolf Borjesson.