A Bank of America Corp. unit is acquiring Italy's largest rigid PVC processor and shopping for similar specialty businesses in the fragmented European market.
Holding companies Plasmat SA of Luxembourg and Title Ltd. of London have agreed to sell Alfatherm Finanziaria SpA of Venegono Superiore, Italy, to Banc of America Equity Partners Europe. Terms were not disclosed.
The parties anticipated a late October closing. The transaction includes Italian operating units Alfatherm Industriale SpA of Venegone Superiore, Gorlex SpA of Gorla Minore and Flexa SpA of Gallarate.
The operations employ 560, had 2001 sales of 111 million euros ($98.3 million) and will show ``a slight increase'' in sales this year, said Carlo Mammola, managing director and a partner in Milan, Italy, with the London-based European fund.
Nearly half the sales go to Italian markets, about 40 percent to other European countries and 10-12 percent elsewhere, including the United States and Middle East.
The rigid PVC operations are Italy's largest and rank third or fourth in Europe, Mammola said in a telephone interview. Alfatherm Finanziaria's businesses have smaller market positions in flexible PVC.
``In general, our investment policy is based on the concept of integrating companies with complementary business,'' Mammola said. ``We will look at possibilities in Italy and abroad, [and] we will grow the company in Europe.''
Alfatherm Industriale had 2001 sales of 59 million euros ($52.3 million), up from 55 million euros ($51.8 million) the previous year. It calenders rigid, semirigid and stretched PVC films for the furniture, pharmaceutical, cosmetic, stationery and food markets.
Gorlex calenders PVC film for credit cards, furniture and general and food packaging, and Flexa calenders and coats flexible PVC films for stationery applications.