Barlo are top producers after £8.6m German deal - clear plastic sheets
Packaging and radiator manufacturer Barlo will buy a German plastic company for up to £ 8.
This will make it the largest manufacturer of extruded plastic products in Europe.
Barlo is buying ICI acrylic resin, a German subsidiary of the UK's ICI, and analysts say the company's earnings will increase next year.
Headquartered in nisvitz, East Germany, the company has modern manufacturing facilities with 60 employees.
Lost 1 pound before tax.
Barlow boss Tony Mullins said yesterday that it was £ 5 last year, but it is expected to make a profit in the six months to last June.
The deal included paying 2.
The share capital of ICI acrylic resin and £ 6 is 05 m.
62 m for dischargecompany debt.
No acquisition of bank debt.
The final price has not yet been decided but will not exceed the premium of 1.
Barlo said the net assets exceeded 18 million.
From June 2000, the debt will be repaid in eight quarters, but Mullins said that the debt situation in Barlow will hardly change.
The company had only six PCs last year.
Mullins said the acquisition would increase Barlow's annual output of plastic sheets by 65 PCs to 21,500 tons, while the main management would join the Barlow plastics team.
He added yesterday that the acquired facilities were high
Grade work near the border with the Czech Republic and Poland.
Additional capacity is urgently needed, he said.
The new plant will complement the plastic plant in Spain, the Czech Republic, Belgium, France and Germany.
Barlo and ICI also agreed that the Irish company will produce the extrusion Asia sheets of the Perspex XT brand under the permission of the ICI customer base.
Speaking of the transaction, Mr. Mulligan said: "This is an important step for Barlo plastics to grow in Europe's transparent plastic board business, representing significant progress by the group in this area.
"Ici said the sale was subject to regulatory approval and added that it intended to sell all of its acrylic business.
A series of disposal programmes are currently being evaluated.
Mr Mullins does not rule out the possibility of acquiring its radiator unit in the coming months.