M&As: Covestro to sell European PU systems business to HIG Capital; Tekni-Plas completes buy of Amcor facilities

German materials firm Covestro is to sell its European Systems Houses business to US investment firm HIG Capital. The sales proceeds amount to a high-double-digit Euro million sum. Covestro says the decision to sell the systems houses was taken as part of its ongoing portfolio optimisation process that includes the sale of Covestro’s North American spray PU foam systems house in 2017.

With its new owner HIG, the European Systems Houses now have the perspective to position itself as an independent, focused player for mid-sized customers. In Asia with its developing PU markets, Covestro will continue to serve its customers through its established systems houses network.

The systems houses are part of the company’s PU segment and are offering tailor-made PU systems for customers. The European Systems Houses business comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy. Approximately 250 employees are generating annual sales of some EUR230 million.

In other news, US packaging maker Tekni-Plex has completed the acquisition of three manufacturing facilities from Amcor Flexible Packaging that serve medical device OEMs.

Located in Madison and Milwaukee, WI, and Ashland, MA, the facilities provide a broad portfolio of sterilisable medical device packaging substrates, including coated and uncoated Tyvek, heat-seal and cold-seal coated paper and films, medical-grade laminates, and die-cut lids and labels, said Tekni-Plex.

“The acquisition expands our complex packaging solution portfolio for medical device manufacturers, many of whom have been supplied by our Colorite, Natvar and Dunn medical products businesses for decades,” said Paul Young, President/CEO of Tekni-Plex.

This is Tekni-Plex’s 11th acquisition it has made in the past five years.

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