REYKJAVIK, ICELAND (Aug. 23, 3:30 p.m. ET) — European rigid packaging and rotational molding group Promens has been acquired in separate deals by two state-owned Icelandic investment organizations.
Initially, the investment firm Horn Invest, part of one of Iceland's biggest state owned bank, Landsbanki, bought a 99 percent stake in the plastics processor from its Icelandic parent Atorka Group.
Reykjavík-based Horn, formerly a minority Promens shareholder, then agreed to dilute its stake to 59 percent, enabling Iceland's state-run Enterprise Investment Fund (EIF) to pick up 40 percent. EIF invested around 36.8 million euros in Promens, which operates 45 plants in 19 countries around the globe.
One per cent of Promens's capital is held by some of its key managers.
EIF's investment includes an increase in Promens' share capital which will be used for new investments and to reduce its debts, according to Promens.
The new Promens owners have plans to list the plastics processor on the stock market in two or three years' time. Last year, Promens group recorded an annual profit of nearly 12 million euros on sales of 584 million euros.
Promens produces packaging for the food, pharmaceutical and cosmetics sectors as well as molded components for the automotive, agricultural equipment and heavy machinery industries.
“Strong ownership is very important for an international company like Promens, and it is a matter of great satisfaction for us here that the company is now owned by two powerful investment companies,” commented Promens CEO Ragnhildur Geirsdóttir when the deals were announced.
Since then, Geirsdóttir, who held the post since 2006, has been replaced as chief executive by another Promens director, Jakob Sigurdsson.
Horn's managing director, Hermann Már Thórisson, commented: “It is a very positive development for us to have the Iceland Enterprise Fund aboard as a Promens shareholder. Strong ownership backing will improve the company's potential to take the operations forward in the markets where it operates.”
Current investment projects at Promens include a scheme to expand production at its Promens Dalvik container rotomolding business in Dalvik on the northern Icelandic coast.
Formed in 1984 under the name Sæplast, Promens Dalvik, a molder of large, insulated double walled containers, for the fishing industry, was at the root of the rapid growth of Promens group. It has since developed a range of other containers aimed at the food processing industry.
Today, 65 percent of Dalvik's trademark tub containers are sold to the seafood industry while 35 percent go mainly to the meat, vegetable and other food production sectors. It moulds up to 30 different types of tub including 460, 660 and 1,000 liter versions.
Dalvik has also diversified into manufacturing other molded products including rotomolded pallets, septic tanks and road gullies.