Pechiney to Acquire Novacel for $90 Million
June 17, 2003
Pechiney recently announced that its subsidiary, Pechiney Plastic Packaging Inc. (PPPI), has entered into an agreement to acquire Novacel, Mexico's leading custom flexible packaging company, for US $90 million. Novacel, headquartered in Guadalajara, manufactures a variety of flexible packaging products, primarily for the food markets. The company operates two manufacturing sites throughout Mexico and employs approximately 1000 people. Sales in 2002 were approximately US $110 million. PPPI expects to close the transaction this summer, pending regulatory approval. "We are excited at the prospect of welcoming Novacel into our business," said Ilene Gordon, president of Chicago-based Pechiney Plastic Packaging. "We are joining forces with a leading player that competes in a packaging market that is enjoying strong growth. This transaction continues our strategy of expanding globally in selected markets."