Berry Global Inc. has sold two Promens plants — in Zevenaar, Netherlands, and Rongu, Estonia — to Italy-based SAPA SpA.
"Berry is delighted to have found the right home for the Promens Zevenaar and Promens Rongu businesses," Tom Saunderson, Berry's executive vice president of corporate development, told Plastics News in an emailed statement.
The deal included all of the plants' equipment, Pietro Gagliano, communication and marketing director for SAPA, told PN in an email.
The plants will not undergo any leadership or workforce changes as a result of the deal, Gagliano said.
The two plants employ more than 600 people and generated sales of 105 million euros, according to a Jan. 30 news release.
SAPA's pro-forma annual sales will top 400 million euros.
"We are grateful to our former colleagues at Zevenaar and Rongu for their exceptional work over the years, and we wish them the very best for their new journey with SAPA," Saunderson added. "This was the right deal for Berry, and SAPA is the right home for these businesses."
Saunderson led the divestiture for Berry Global.
"While we do not disclose transaction terms, the divestiture represents the continued alignment with our long-term strategy of simplifying our portfolio, enhancing the stability of earnings, and improving long-term growth," a spokesperson for Berry told PN.
The acquisition of the former Promens facilities allows SAPA to expand into the truck and industrial automotive sector, the release said.
It "bolsters [SAPA's] presence with major customers including Volvo, Scania and Daimler Truck."
"We're going to use the One-Shot method also in the truck business," Gagliano added. "At SAPA, we take pride in our … One-Shot method, which boosts efficiency, sustainability, and quality in the automotive business, and now also in truck and agriculture business."
SAPA's One-Shot technology produces plastic components for commercial vehicles in a single process, "improving efficiency, sustainability, and quality for both electric and internal combustion engine vehicles," the release added.
SAPA supplies interior components, bodywork, and engine compartments for OEMS including Volkswagen, FCA, CNH, Iveco, BMW, Ferrari, Aston Martin, Rolls Royce, Porsche, Audi, Skoda, Seat, DAF, and Caterpillar. The group operates 11 plants in Europe, Africa and Asia with 1,800 employees.