MOSCOW (MRC) -- Milan-based private equity firm M&C SpA has completely divested its bi-oriented polypropylene (BOPP) films business with the sale of German films manufacturer Treofan Holdings GmbH to a company part of the Indian BC Jindal Group, as per Plasticsnewseurope.
Speaking to PNE, an M&C spokesman refused to disclose the name of the Jindal business that had acquired the European operations of Treofan, which was the only Treofan business remaining under the control of M&C.
In a 6 Aug statement, M&C, which currently holds 98.75% of Treofan shares said the purchase price could range between EUR500,000 to EUR4.8m.
The final price, said the company, shall be determined before the closing of the transaction, which is expected to be in the first quarter of 2019.
Based in Raunheim, Germany, Treofan Holdings had sales of EUR271.8m and negative EBITDA of EUR3.6m last year.
The company produces 120,000 tonnes per annum of films at three production plants in Germany and Italy.
The transaction follows the sale of Treofan Americas to Canadian label manufacturer CLL Industries in June this year.
M&C announced in 2017 that it was divesting Treofan Americas business in order to proceed with the reorganisation of the company’s European business and reduce its debts.
In its statement today, M&C said the reorganisation had become increasingly challenging on a “standalone” basis and without cooperation with another strategic player in the BOPP industry.
M&C said part of the reason for the divestment was the “current market conditions, which strongly call for further economies of scale."
The Italian private equity firm expects that as a result of the disposal, it would not be in a position to recover the entire current book value of the interests held in Treofan Holdings.
The company said it could not therefore confirm the value to be realised through the transaction and the potential loss arising from the disposal of the investment in Treofan Holdings.
As one of India's leading business conglomerates, the BC Jindal Group manufactures, amongst others, polyester and BOPP films through its Jindal Films operations. Headquartered in New Delhi, the films business has production sites in Italy, the Netherlands, the US, India and Belgium.