Just weeks after announcing the acquisition of an Eastern European packaging business, Polimoon has confirmed the acquisition Rosti's personal care packaging operations in Germany and Denmark.
The company said that the acquisition, envisaged to be completed by 29 January, would further strengthen its position in the Nordic and German packaging markets, markets the company had been aiming to increase its presence in as part of a major expansion drive.
Rosti, which is a subsidiary of Denmark-based A.P. Møller-Mærsk, has annual sales of €40 million, approximately 290 staff and comprises four factories in Germany and one in Denmark. The company said that its PET bottling facilities in Germany and Denmark are not included in the transaction, the total cost of which was not confirmed.
Rosti is a leading manufacturer of bottles, tubes and containers used in the consumer packaging industry in Northern European. It mainly supplies both the personal care and household industries, but also supplies industrial packaging for the chemicals industry.
Polimoon said that Rosti's customer base is a good blend of local and multi-national businesses, factors that are well suited to the type of business that Polimoon already conducts in Europe.
Based in Oslo, Norway, Polimoon already has a significant presence in the Nordic countries, but will now benefit from a third operation in the massive German market. With the acquisition of Rosti the company will be present in 13 European countries, have a combined sales turnover of €380 million and 2,740 workers.
In recent years the market for consumer packaging in both Germany and Denmark has been characterised by over-capacity. In view of this, consolidation of the market has become a necessity that Polimoon's proposed acquisition should help to address.
Polimoon said that currently Roti's German operations are profitable, but that the Danish operations are loss-making. This problem is expected to be addressed through a restructuring plan that will mean added costs for the company.
"An acquisition of Rosti will allow Polimoon to strengthen our market position in NorthernEurope… It is a further step in consolidating the market and better serving customersacross Europe as we, up until today, have had a limited presence in the Germanpackaging market," said Arne Vraalsen, president & CEO Polimoon.
Last month Polimoon announced the acquisition of Lima-Pol Polimoon, amanufacturer of premium packaging located in Poland, with a focus on cosmetic jars and bottles. It has also recently acquired Rim-Tech, a manufacturer of automotive and construction components based in Czech Republic.