Restructuring Danish plastics processor Rosti A/S has jettisoned the bulk of its rigid packaging operations in a bid to concentrate resources on its expanding industrial component manufacturing division.
The company has sold its entire European-based containers division, except for two PET blow molding plants, to rapidly expanding Polimoon Group Ltd. of Oslo, Norway, for 17 million euros ($20.6 million).
The takeover, which took effect Jan. 30, gives Polimoon possession of Rosti Containers' German polyethylene and polypropylene container blow molding plants in GÃ¶rzke, Neumunster, Winsen and Witzenhausen; and PE bottle, tube and container molder Rosti Pack A/S of Glostrup, Denmark.
The deal excludes Rosti Containers' two other facilities - at Leinefelde, Germany, and NorrkÃ¶ping, Sweden - both of which mold PET bottles for the beverage and water sectors.
Polimoon said it will reorganize the operations to make them profitable.
In Denmark, Polimoon already owns Polimoon A/S, a well-established PET bottle and wide-mouth jar molder in Kolding, and pharmaceutical packaging molder Polimoon Medical Packaging A/S in Langeskov, with 53 injection blow molding machines as well as extrusion blow and injection molding capabilities.
The Rosti takeover is Polimoon's third announced since the end of November. It follows the purchase of a 70 percent interest in personal-care jar and bottle molder PPH Lima Pol Sp.zo.o of Warsaw, Poland, and more recently, its takeover of automotive part molder Rim-Tech of Zlin, Czech Republic.
The Rosti businesses being bought have combined annual sales of 40 million euros ($48 million) and employ 290.
``[This] is a further step in consolidating the market and [will help us] serve customers across Europe as, up until today, we have had a limited presence in the German packaging market,'' said Polimoon President and Chief Executive Officer Arne Vraalsen.
Following the latest deal, Polimoon will have total sales of 380 million euros ($460 million) and employ 2,740 across Europe.
Rosti, which is based in Copenhagen, Denmark already has seen radical change in recent years, with major restructuring of Rosti Technical Plastics, its component molding division. Rosti Technical Plastics, which runs four North American plants - in Searcy, Ark.; Minden, La.; and Dallas, plus Rosti Mexico in Guadalajara - closed or sold five plants in Britain and has expanded in Asia and Eastern Europe.
Polimoon's December purchase of Rim-Tech for 5.8 million euros ($7 million) gives it added technology in the automotive industry, Vraalsen said.
Rim-Tech has 200 employees, serving mainly bus and truck manufacturing segments. It expects to record sales of about 9 million euros ($11 million), with an operating margin of 9 percent, Polimoon said.