M&As: AptarGroup to buy CSP Tech for US$555 mn; Ascend gets foothold in Europe with European compounder

Taiwan's CPC to invest US$6.6 bn

Packaging company AptarGroup Inc. (ATR) is to acquire CSP Technologies, which is involved in active packaging technology based on proprietary material science expertise, for an enterprise value of US$555 million.

Aptar plans to fund the transaction with available cash on hand. The consultation process with CSP Technologies' works council in France will begin as soon as possible. Upon completion of the French works council consultation process, Aptar expects to enter into a definitive stock purchase agreement with CSP Technologies for the proposed transaction.

The proposed transaction, which has been approved by Aptar's Board of Directors, will also be subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of this year.

Founded in 1965, CSP Technologies has over 30 years of experience in integrated, active desiccant and product protection technologies in the pharma and food service markets. CSP operates two manufacturing locations in the US and one in France, with opportunities for growth and expansion across Asia and other high-growth economies. It has annual revenues of approximately US$140 million (unaudited).

Meanwhile in other news, US-based integrated producer of nylon 6,6 resin Ascend Performance Materials is to purchase of Britannia Techno Polymer (BTP), an engineering plastics compounder based in the Netherlands. The acquisition provides Ascend with an engineering plastics manufacturing base in Europe and an expansion to its growing portfolio of proprietary compounds.

“Our new partnership with BTP provides Ascend with a sixth manufacturing location and a dedicated footprint for serving our customers throughout Europe with enhanced compounding capabilities and broader application development expertise,” said Phil McDivitt, President/CEO of Ascend. “Most importantly, BTP shares our commitment to safety, quality, innovation and customer service. Together, we will expand our offerings and continue to provide the levels of reliability and technical service customers have come to trust.”

BTP was founded in 2006 by Andrew Leigh. The company is an engineering thermoplastics compounding and tolling company specialising in the production of proprietary nylon compounds. Its certifications include ISO 9001 and TS 16949.

“This purchase will allow us to better serve our European customers and expand our compounding capacity and capabilities,” said John Saunders, Ascend’s European leader.

BTP’s employees will transition immediately to Ascend. Leigh will join Ascend’s global management team as director of compounding technology.


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