M&As: Jindal Films acquires Domo Films in Europe; Zeppelin strengthens its market position with acquisition of MTI Mischtechnik

Flexible packaging maker Jindal Films Europe, a part of the Indian Jindal Group, has signed an agreement with Domo Chemicals to acquire 100% of the shares in Italy-based Domo Films Solutions Spa (DFS). Jindal says the acquisition will allow horizontal expansion of Jindal Films’ business into nylon films (including highly specialized films for pharma and medical sectors) and extend its platform across Europe. Terms were not disclosed.

DFS is one of the major European producers of nylon films (both biax-oriented BOPA and cast extruded CPA) for flexible packaging in food, pharma, medical and other industrial sectors.

The acquisition will boost Jindal Films’ know-how, capabilities, and presence in the pharma, medical and other high end flexible packaging segments, combining biax-oriented (BOPA) and Cast extruded (CPA) nylon films portfolio with the existing full basket of polyolefin-based films. Overall, this means the group will become a full-service provider globally, further expanding the range of plastic films for the flexible packaging converting value chain.

Manfred Kaufmann, CEO of the Jindal Films Europe, says: “DFS is the perfect addition to the growing group. As an established European player in both BOPA and CPA films, the company will perfectly complement our existing European footprint and capabilities. Together we will continue to serve the European and global flexible packaging industry.”

Yves Bonte, CEO of Domo confirms: “We believe that Jindal Films is the right successor to further develop a sustainable future for DFS in the flexible packaging industry and its customers. This is also a logic step for Domo to concentrate in its competence area of polymers and engineered materials.”

Attilio Annoni, Managing Director of DFS, adds: “Combining the two companies’ leadership in sustainability will enable the Jindal Group to stay ahead of customer and regulator expectations even more effectively, further minimizing their environmental impact. DFS currently operates at a Jindal Films Europe site in Luxembourg.

It adds that it is progressively improving/reducing carbon footprint, sourcing 100% of renewable energy and developing with up-stream chemistry recycled/recyclable nylon resins for its green product range Nyleen.

Closing is subject to a number of regulatory authorisations and is expected around end Q1 2021.

Jindal Films is active in the development and manufacture of specialty packaging and labelling film solutions, including multilayer white opaque films, metalized films and coated films, for flexible packaging and labelling applications. The group has affiliated production plants in Europe, United States and in India. It has sales offices to support customer needs in countries around the world, including North America, Europe and Asia.

In other news, Germany’s Zeppelin Systems has taken over the owner-managed MTI Mischtechnik, whose shares were up for sale in October 2020 following insolvency proceedings. The portfolio ideally complements the Zeppelin Mixing Technologies division, as the two companies predominantly serve different market segments – both in terms of the focus of the technologies and global coverage. In addition to the portfolio, the know-how of the MTI employees also plays a major role for Zeppelin. Therefore, the former MTI team at the Detmold site will continue MTI's future business under new management.

Zeppelin says its Mixing Technologies division has been setting standards in mixing technology for years and impresses with its solutions. Therefore, this branch has developed into an important pillar of the company. At the Kassel site, a team of experts researches, develops and manufactures mixers according to customer requirements. With its on-site R&D centre, Zeppelin Systems carries out industrial-scale tests to optimise processes and procedures for the production of sensitive raw materials. For MTI, too, the "Made in Germany" tagline applied. The two brands thus complement each other perfectly.

With the acquisition of MTI, Zeppelin Systems integrates both teams under one management and guarantees not only the continuation of a brand, but also a smooth ongoing of business operations at the Detmold site. A team from the areas of construction, sales, service and IT will continue to look after customers and ensure that they have access to both – the usual service in the new machine business and the supply of spare parts.

This transaction will create an even stronger supplier with a global network locally focused on customer needs and driving new technologies. "With this acquisition, we are further expanding our market position in mixing technology. This is a big step that I am very pleased about," said Rochus Hofmann, Managing Director of Zeppelin Systems. "MTI has great products and an excellent service concept that will benefit us and our customers," Hofmann added.

The portfolio includes heating, cooling and universal mixers for plastics processing and chemical applications. This ideally complements Zeppelin Systems' product range. "Since the mixer solutions from MTI and Zeppelin are largely used in different industries, the overlap of the portfolio is small," Hofmann explains.

For the market, this offers above all positive synergy effects, as both companies are experts in the field of mixing technology. With over 70 years of experience in plant engineering and a high level of competence in the individual process steps, Zeppelin Systems offers not only individual product solutions, but complete concepts - from plant engineering to implementation.

With more than 1,500 employees in 22 locations worldwide, Zeppelin’s Strategic Business Unit (SBU) Plant Engineering specialises in the development and manufacturing of components and plants for the handling (storage, conveying, mixing, dosing and weighing) of high-quality bulk materials. It is in these sectors that Zeppelin Plant Engineering provides its customers with support from project development to engineering, production, automation, control technology, on-site assembly and commissioning through to after-sales service. Customers of this SBU range from plastics producers and processors to manufacturers in the rubber and tyre, chemicals and food industries.

(PRA)

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