Taghleef Industries Group has agreed to buy Derprosa Film, based in Spain, which will add to Taghleef's growing capacity for production of biaxially orientated polypropylene (BOPP) film.
Taghleef, which is headquartered in Dubai, is buying Derprosa from British investors 3i Group, Baring Private Equity and other minority shareholders for an undisclosed amount. The deal announced April 9 is expected to close by the end of April.
Taghleef's current capacity is 385,000 metric tons per year of BOPP, BOPLA and cast polypropylene films for packaging. Its eight production plants are in Italy, Hungary, the United Arab Emirates, Oman, Egypt, Australia, the U.S. and Canada.
Derprosa's one facility is in Alcalá la Real, Spain. According to the company's website, the plant's capacity is greater than 30,000 metric tons per year of BOPP film.
As part of Taghleef Industries, Derprosa will have greater access to global markets and be able to bring in more technology, said Tagleef CEO Detlef Schuhmann in a news release.
The expansion by acquiring Derprosa comes on top of Taghleef's March announcement that it was upgrading production at its Hungarian BOPP plant, upgrading its line to five-layer capabilities and increasing capacity to 60,000 metric tons per year.
Current management from 3i noted that it had worked closely with Derprosa to focus on product development and new markets.
“In the last four years alone, the company has developed and launched more than 14 products and has a strong pipeline of products to launch,” said Maite Ballester, managing director for 3i Spain in a statement.