Packaging giant Svenska Cellulosa Aktiebolaget has bulked up its British protective packaging operations by purchasing expanded polystyrene foam maker Rosslite Ltd.
SCA of Stockholm, Sweden, purchased the company Sept. 7 from London-based Omnipack plc, a holding company owning units that sell metal closures and printing services. Omnipack did not consider Rosslite a core part of its business and sold it after being approached by SCA, Omnipack Executive Chairman Danny Bejarano said Sept. 10.
The Rosslite operations will shift to SCA Packaging Tuscarora, an Aylesford, England-based unit that supplies cushioned foam and fiberboard packaging. With the acquisition, SCA Packaging will have seven plants in England and Ireland, according to an SCA Web site.
``Rosslite is a very good group with over 30 years in the industry,'' Bejarano said. ``It fits well with Tuscarora's portfolio. We've owned it for eight years, but it was part of a consolidation that we're doing.''
Rosslite has foam molding plants in Torpoint and Atcham, England, and about 80 employees, Bejarano said.
The company expects sales of about £10 million ($18 million) this year, he added. The purchase price was not disclosed.
Rosslite makes a variety of products from EPS and expanded polyethylene foam, including boxes for fish and produce and horticultural trays.
The company also sells foam cushioning to a number of British appliance and electronics manufacturers.
Officials of SCA were unavailable before deadline to discuss details of the deal.
SCA, a major, worldwide manufacturer of hygiene products and protective packaging, recorded about 85 billion Swedish kronor ($11.3 billion) in sales last year.
Of that total, about 8 percent comes from the United Kingdom, according to information on the company's Web site.