PGI acquires Spanish nonwovens producer.
The business is operating as a new wholly owned subsidiary (PGI Spain) with in excess of 50,000 metric tons of combined capacity. The acquisition furthers PGI's strategy of strengthening its position as the global leader in the hygiene market by increasing its presence in Europe, the world's largest volume market, and bringing it into new markets in Western Europe and Northern Africa where Tesalca-Texnovo has a strong customer base. PGI's global spunlaid capacity is now in excess of 285,000 metric tons.
Texnovo was founded in 1989 as a family-owned private business focused on industrial segments, and the Tesalca business operations were added a decade later to supply the hygiene and medical segments. With approximately 280 total employees and combined annual sales of approximately $87 million, TesalcaTexnovo is the only organization that manufactures spunbond polypropylene nonwoven materials in Spain and is a leader in the European market.
The Tesalca-Texnovo operations are headquartered in Barcelona and include two plants located on the same property in Tarragona, Spain, with six Reifenhauser Reicofil lines serving the hygiene, medical and industrial/agricultural segments.
"This acquisition will give us a larger platform for growth in this part of the world and will further our strategy to be the global hygiene leader, "said Veronica (Ronee) Hagen, PGI's chief executive officer. The Tesalca-Texnovo business is a good fit with our hygiene, medical and industrial businesses, and will allow us to leverage our global customer relationships and operational excellence."
"Through this transaction, the Tesalca-Texnovo businesses will grow under the ownership of a large, globally recognized premier nonwovens producer," Jose Durany, managing director of Tesalca-Texnovo and member of Grupo Corinpa S.L., said. "This will be a good union between companies with similar goals. We look forward to being long-term partners with PGI."
In other news, PGI has purchased the 40% minority stake in Dominion Nonwovens Sudamericana, S.A. (PGI Argentina) from its partner, Guitlermo E. Kraves. Terms of the transaction were not disclosed. Located near Buenos Aires, PGI Argentina has been operating as a joint venture since 1997 when it installed a multi-beam spunmelt line serving the hygiene and industrial markets of the Mercosur region. An extrusion line was added in 2003 to increase the company's fully integrated production capabilities. Most recently, PGI installed a new wide-width, multi-beam line featuring the latest spunbond technology with capacity in excess of 15,000 metric tons per year. PGI purchased a majority share of the business in 1999 and has been focused on growing the business in the Mercosur as part of its overall hygiene leadership strategy in Latin America.
"This investment is a signal of our confidence in the future of our operations in Latin America and the strategic significance of the operations in Argentina," Ms. Hagen said." We have successfully positioned ourselves with supply in each of the major trade regions of Latin America and bringing the Argentina joint venture fully into the PGI ownership structure gives us the ability to fully capitalize on future growth opportunities."
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|Title Annotation:||Top Of The News: All the News That's Fit to Print|
|Date:||Dec 1, 2009|
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