BASF Corp. has sold its Aurora-brand specialty films business to startup investor RMS Packaging Inc.
Terms of the deal were not disclosed. RMS owned by investor Sheldon Rosenberg and his father, Reuben will operate the 12-employee business at a BASF facility in Peekskill, N.Y.
BASF, based in Florham Park, N.J., will continue to own the facility, where it also makes pigments.
The purchase includes four manufacturing lines. Aurora films are based on polyester, polycarbonate, oriented polypropylene and other resins and are sold into packaging, labels, displays, gift wrap and household goods. The special-effect, iridescent films can be used alone or with other films, graphics, background colors or embossing.
We see this as a good business opportunity, Sheldon Rosenberg said. Markets for these products are growing and there's a good technological foundation here.
Rosenberg added that his family has experience in the plastic film market, but he declined to provide details.
The specialty films business was started in Peekskill by Mearl Corp. in 1976 and later sold to Engelhard Corp. BASF acquired the business in 2006.
For BASF, the sale is part of the company's ongoing portfolio review and represents another step in our process to realign our business to ensure long-term profitable growth, said dispersions and pigments group Vice President Uwe Liebelt in a news release.
McGladrey Capital Markets LLC of Costa Mesa, Calif., acted as financial adviser to BASF on the deal.
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