French beauty packaging firm PSB Industries SA plans to grow its North American base by acquiring Topline Products Co. Inc.
PSB said it is in negotiations to acquire Topline, a Wayne, N.J.-based producer of packaging, accessories and finished goods. PSB of Annecy, France, expects to complete the acquisition in January.
“We want to be a key player with local production capabilities in North America, in both the beauty packaging market and healthcare [and industrial] one,” explained PSB strategy and business development manager Pierre-Antoine Henry in an email correspondence.
The companies did not disclose terms of the proposed deal.
Henry said PSB wants to integrate Topline with its Texen subsdidiary, which is the core of its beauty packaging business. PSB's current North American injection molding plants in the beauty market are in Wyandanch, N.Y., and in Toluca, Mexico. A facility in Torrington, Conn., does metallization and the Toluca plant also does metallization and blow molding.
After the acquisition, the PSB Beauty unit will have three U.S. plants, two in Mexico, five in France and one in China. The combination also will have four development and sales offices, in New York, Paris, São Paolo and Shanghai. Henry estimated sales for PSB's beauty segment will exceed $200 million per year after the acquisition.
PSB will become the third-largest molded beauty packaging producer worldwide and only one of two players with production in Europe, North America and Asia, Henry said. PSB Beauty already has 197 injection molding presses, 15 blow molding lines and more than 200 finishing lines in nine manufacturing sites globally.
PSB's Texen unit grew in North America in mid-2014 when it bought C+N Packaging Inc., a plastic closure specialist in Wyandanch. Six years earlier it had bought injection molder and mold maker Mar-Lee Cos. Inc. in Fitchburg, Mass.
Topline has been expanding globally. In 2013 it boosted its footprint in China with a new injection molding, toolmaking and decoration facility in Tianjin. At that time, Topline said it had annual sales exceeding $100 million from facilities in Michigan, Mexico and China. Officials were not readily available to provide more recent sales data. Topline's main processes are injection and blow molding.
“Topline is well known for its innovation, design and development capability,” Henry explained. Texen is known for its automation and high quality in cosmetic packaging and fragrance closures.
“This new acquisition project, in line with our Ambition 2020 plan, would enable PSB Industries to reinforce its footprint in North America as well as enter Asia and South America,” noted PSB Chairman and CEO Olivier Salaun, in a news release.
PSB also has deep roots in related molding markets. Its PSB Health and Industry segment has eight plants in France, Poland, the United States and Mexico, which run 220 injection molding lines. Seven of the plants have ISO 7 clean-room certification.
“I am delighted to see my teams integrate Texen as soon as possible in order to create more value and enhance the development of the luxury and beauty business unit in PSB Industries, which is significantly growing,” stated Topline CEO and founder Charles Chang, in a news release.
PSB's other, smaller businesses are agriculture, nutrition and specialty chemicals. PSB's current operations will log sales of approximately 340 million euros this year. Beauty, its biggest segment, will account for about 44 percent of sales before the Topline acquisition. Health & industry will represent about 29 percent of sales, followed by agriculture & nutrition (15 percent) and specialty chemicals (12 percent).
