Private equity firm Oaktree Capital Management LLC has agreed to acquire flexible packaging manufacturer Nordenia International AG of Greven, Germany.
Subsidiaries in North America are Nordenia USA Inc., which makes a range of films and bags using coextrusion, adhesive lamination and rotogravure printing in Jackson, Mo.; and Nordenia Canada Inc. of Belleville, Ontario. The Belleville operation purchases film from the Jackson plant and makes printed film and bags for hygiene and other markets.
Nordenia also has production plants in Europe, Asia and North Africa. The companies sales grew 8 percent in 2005 to 430 million euros, Nordenia said in a news release. It employs about 3,000 globally.
Nordenia and Oaktree said in a news release they expect to complete the acquisition in the first quarter of this year. They did not disclose terms of the agreement.
``We now strive to further expand our market share both through organic growth as well as through bolt-on acquisitions,'' said Nordenia Chief Executive Officer Rallph Landwehr in a news release. He and other management executives expect to stay on after the purchase.
``The film and flexible packaging market offers great growth potential,'' said Hermann Dambach, managing director for Oaktree GmbH of Frankfurt, Germany. ``Nordenia has a proven track record regarding the quality and innovation of its products.''
Nordenia was one of 16 companies recently fined by the European Commission for price fixing on industrial bags. Nordenia and its former unit Nordfolien GmbH of Steinfeld, Germany, were fined jointly 39.1 million euros.
The Daily Deal Web site reported that Boston-based private equity firm Advent International Corp. backed away from a deal to buy Nordenia prior to Oaktree Capital's agreement. Officials with Nordenia, Oaktree and Advent could not be reached for comment on the report.
Oaktree is a Los Angeles-based global investment company managing more than $29 billion. Nordenia was the third acquisition it lined up in Germany in 2005.
London investment banker Ermgassen & Co. acted as financial adviser to Nordenia and its sellers.
