Wendel considers acquisition of CSP Technologies for $360m

3 December 2014 (Last Updated December 3rd, 2014 18:30)

Wendel is in talks to acquire US-based high-performance plastics packaging company CSP Technologies for $360m.

Wendel is in talks to acquire US-based high-performance plastics packaging company CSP Technologies for $360m.

The transaction is in line with the company's 2013-17 objective of investing €2bn, with a strong focus on North America and Europe.

Wendel will invest approximately $190m in equity and will hold 97% of the equity in CSP alongside the management. New borrowings to support the acquisition will total $170m.

"CSP Technologies provides plastic packaging solutions to a variety of additional end-markets."

The agreement, which is subject to the necessary approvals from the antitrust authorities, is expected to be completed early next year.

CSP Technologies provides plastic packaging solutions to a variety of additional end-markets, including consumer health, food, dairy and retail. It employs 400 people and produces its patented, Six-Sigma quality products at two injection-moulding manufacturing facilities in the US and France.

The company is expected to generate more than $100m in revenues this year.

CSP Technologies president John Belfance said: "We are excited by this proposed transaction with Wendel, which is fully aligned with our long-term strategic plan and shares our commitment to provide customers with innovative, high-quality speciality plastic solutions from both the US and France.

"Wendel's long-term investment philosophy and successful track record of building world-class manufacturing companies will help CSP Technologies continue our extraordinary growth and achieve the next level of success."