Specialty materials manufacturer Royal Ten Cate NV is selling off its noncore European plastics packaging business, Ten Cate Plasticum, to management and Dutch investment firm NPM Capital.
Royal Ten Cate of Almelo, the Netherlands, and Amsterdam-based NPM agreed to the deal, which values TCP at around 20 million euros ($23.6 million). The sale was to be completed in March, according to Royal Ten Cate director Frank Spaan.
TCP, based in Tilburg, the Netherlands, has four injection molding plants - two in the Netherlands at Ede and Tilburg; one in Waldkirch, Germany, and the fourth in Alfreton, England. The consumer packaging supplier, employing 200, molds aerosol spray can overcaps, self-closing and resealable lids and boxes for moist tissues. The firm serves the personal-care, food and household-products markets.
In 2001, RTC group sold Ten Cate Plasticum USA's aerosol overcap molding plant in McHenry, Ill., to a consortium comprising Engineered Molding Solutions Inc. of Spring Grove, Ill., and custom molder Cobra Plastics Inc. of Twinsburg, Ohio. The group also sold its plant in Chartres, France, that year.
TCP is part of Royal Ten Cate's technical components division, which the parent firm declared noncore three years ago with plans to divest the operations. TCP was losing money, but its parent group put in a new management team and has invested in improving its performance, Spaan said. Today TCP, which is the second technical components operation to be sold, has annual sales of 36 million euros ($42 million).
Still within the division are Ten Cate Enbi International BV, a producer of rubber-based rollers, and a 50 percent share of Synbra, a joint venture producer of expanded polystyrene and specialty foams for packaging and insulation. RTC plans to sell those units.
The disposals will allow RTC to concentrate on its main business and acquire other companies in the growth markets of protective fabrics, aerospace and armor composites, artificial grass and geosynthetics, it said.
Last year RTC gave the go-ahead to a multimillion-dollar investment in new production equipment at subsidiary Bryte Technologies Inc. of Morgan Hill, Calif. Bryte, a manufacturer of Cetex thermoplastic composites for aviation, has developed new epoxy resin formulations for more demanding commercial and military aircraft.
Bryte, which supplies film and paste adhesives, liquid resin systems and prepregs, is part of Ten Cate Advanced Composites, which includes operations in France and the Netherlands.