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Wellman divests interest in Wellstar, posts sales results.

Wellman, Shrewsbury, NJ, has signed a letter of intent to sell its 44% ownership interest in the Netherlands-based Wellstar Holding by to Crown Cork & Seal, Philadelphia, PA. The sale, at a value of $33 million, was expected to be completed last month. Wellstar, formerly Desmacon Holding by, is a polyethylene terephthalate (PET) bottle manufacturer and recycler that Wellman and Constar International jointly acquired in June 1989. The joint venture became the largest PET bottle manufacturer in Europe through subsequent acquisitions; in October 1992, Constar was purchased by Crown.

Wellman's original interest in the joint venture resulted from Wellstar's reputation as the only PET bottle manufacturer in Europe that repurchased postconsumer PET bottles for recycling. Wellman had constructed its first European PET bottle recycling facility in Spijk, The Netherlands, to capitalize on these resources and to supply its Irish fiber operation. The Spijk recycling facility is not part of the sale.

Wellman also recently reported 1992 fiscal year and fourth quarter financial results. For the year ending December 31, 1992, Wellman achieved sales of $828.2 million, up from $805.7 million for 1991. Net income for the year was $52.3 million, up from $46.6 million.

Fourth quarter sales figures were reported at $202.9 million, up from $199.2 million a year ago. Earnings for the period were $12.6 million, down from the 1991 fourth quarter level of $14.3 million.
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Title Annotation:Wellstar Holding B.V.
Publication:Nonwovens Industry
Date:Apr 1, 1993
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