Snia, the diversified Milan-based company, has agreed to sell its Caffaro Flexible Packaging division to a private investment group, Bridgepoint Capital, in order to focus on its medical and textile businesses.
Snia said that Caffaro was the largest producer of nylon film in Europe, with its Emblem and Filamon brands accounting for 50 per cent of total sales in this sector. Nylon film is widely used in the food packaging sector because of its ability to act as an oxygen barrier.
Caffaro's production facilities are located at Ceriano Laghetto (Milan) and Pisticci (Matera), and the sale of the business is expected to be completed by the end of this month, providing authorisation is forthcoming from the antitrust authorities.
The sale is valued at some €120 million, earning Snia around €60 million in exceptional profits.
The agreement covers not only the sale of the Caffaro Flexible Packaging but also Snia's entire stake in Emblem Europe and a building in Cesano Maderno.
In 2001, the operations being divested generated revenues of €90.6 million and EBITDA equivalent to 17.8 per cent of revenue. In the second quarter of the current year - the latest figures available - Snia's chemicals and packaging film business unit posted sales of €55.3 million, down from €100.3 million a year earlier, but this was due mainly to the divestment of an agrochemical business and a fall in chemical prices.