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June 21, 2010 02:00 AM

Flambeau boosts Europe biz

Barry Copping
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    Stadium Group plc is selling Quest Consumer Products and Stadium Building Products — which together make up Stadium Branded Plastics — to Flambeau Europlast Ltd. for approximately 2.5 million pounds ($3.7 million) in cash.

    Under the terms of sale, Flambeau Europlast has purchased Stadium Branded Plastics and its trading assets outright, and will lease its 128,000-square-foot London site from Stadium Group for six to 12 months.

    Hartlepool, England-based Stadium intends to sell the property at the conclusion of the lease.

    All staff employed at the site will transfer to Flambeau Europlast, with their terms and conditions of employment unaffected.

    The sale will allow Stadium to focus on its electronics business, which provides electronic manufacturing services and power-supply solutions, and to better position the branded plastics business under new and specialized ownership as part of a larger plastics group.

    Flambeau Europlast is a Ramsgate, England-based unit of Baraboo, Wis.-based Flambeau Corp., an injection molder and blow molder. Flambeau projects the acquisition will add about 11 million pounds ($16.3 million) to its volume in the U.K. alone, the company said in a news release.

    Nigel Rogers, CEO of Stadium Group, said: “It is in the long-term interests of [Stadium Branded Plastics] to become part of a larger plastics operation, where it can take advantage of the relevant economies of scale crucial to success in this sector.”

    John Wingfield, managing director at Flambeau Europlast, added: “The acquisition of the business enables us to complement our existing trade molding with our own established product lines in specific market sectors. We look forward to developing strong relationships with our new customer base by utilizing Flambeau's resources in the U.K., Europe and the U.S.”

    Flambeau expects to integrate the operations and logistics for the two product lines into its Ramsgate facility during the next few months, according to the news release. Tooling to make the Stadium Building Products and Quest brand products will be replicated and shipped to one or several of Flambeau's seven U.S. manufacturing facilities and Saltillo, Mexico, affiliate Plasticos Flambeau S. de RL de CV.

    Stadium Building Products manufactures plastic products for the consumer, DIY, building and construction, agriculture and equestrian markets, as well as a comprehensive line of home and garden products. Additionally, the firm produces general building and plumbing products and accessories. Quest is recognized as the leading U.K. manufacturer of infant-care products with a wide range of feeding, nursery and safety items.

    In the financial year ended Dec. 31, Branded Plastics contributed sales of 11.3 million pounds ($16.7 million) and net operating profit of 800,000 pounds ($1.18 million) to Stadium Group.

    Copyright 2010 Crain Communications Inc. All Rights Reserved.

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