Polimoon Group Ltd. has gained a valuable consumer packaging foothold in Eastern Europe with its takeover of Polish processor PPH Lima-Pol Sp.zo.o.
Oslo, Norway-based Polimoon purchased a 70 percent interest in Warsaw-based Lima-Pol through Lima-Pol Polimoon sp. z.o.o., a joint venture set up with Lima-Pol's former owner, Tadeusz Jobda. Polimoon will acquire the remaining 30 percent over the next three years, the firm said.
The price was undisclosed.
Lima-Pol, with annual sales of 13 million euros ($15 million) employs about 200 making a range of jars and bottles for the personal-care sector, especially cosmetics.
The Polish molder serves a customer base located in Poland, Russia and other European countries with brands such as L'Oreal, Avon and Alberto Culver. It runs some 40 processing lines, including stretch blow and injection stretch blow and injection molding machines.
The business has a record of rapid growth with recent average annual rate increases of 20 percent. Polimoon expects continued growth at Lima-Polimoon thanks to high demand from blue-chip personal-care groups investing heavily in filling operations in Russia and Eastern Europe.
``Lima-Pol provides an entry for the Polimoon Group into the growing Eastern European market and the consumer packaging segment,'' said Polimoon President and Chief Executive Officer Arne Vraalsen. The takeover is part of his company's strategy of growing the consumer packaging segment.
The Norwegian group, which had an initial public offering of shares on the Oslo Stock Exchange in April, already has one plant in Eastern Europe. The facility in Rongu, Estonia, injection molds electronics and automotive components.
In 2004, consumer packaging represented about 47 percent of Polimoon's sales. The deal will give the firm total annual sales of 325 million euros ($380 million) and a workforce exceeding 2,250.