Menasha Corporation announced today that it has signed an agreement to sell Poly Hi Solidur, Inc., its Ultra-High Molecular Weight Polyethylene (UHMW-PE) business, to Quadrant AG for approximately $82 million plus the assumption of $3 million of capitalized leases. The transaction is expected to close in August 2005.
“Poly Hi Solidur is a great company with a dedicated team of employees, but we decided to sell the company so we could focus Menasha’s resources on our other businesses.” said Arthur W. Huge, president and chief executive officer of Menasha Corporation. “Poly Hi is also a great strategic fit within the Quadrant Group. We are convinced the sale is in the best interests of Poly Hi Solidur’s employees and customers because of Quadrant’s international leadership role in this industry.”
Menasha Corporation will invest anticipated proceeds from the sale in its other businesses. These include Menasha Packaging Company, a corrugated packaging and high quality Point-of-Purchase display manufacturer and service provider; ORBIS, which manufactures plastic returnable packaging and provides returnable material handling services; LevaragePoint Media, a provider of specialized in-store consumer marketing and promotion products and services; and New Jersey Packaging, a manufacturer of pharmaceutical labelling and packaging.
Poly Hi Solidur, based in Fort Wayne, Ind., is the world’s largest producer of UHMW-PE mill and customer shapes and its products are sold to industry leading companies in the food preparation and processing, automotive, medical products, chemicals, packaging and bottling, transportation, leisure and recreation, power generation and marine sectors. Poly Hi Solidur has over 1,000 employees working in the U.S., Germany, France, the UK, Japan and South Africa.
“This acquisition is another significant growth step for Quadrant in the context of our strategic focus on high-performance plastics,” commented Arno Schenk, member of the board and Co-CEO of the Quadrant Group. “Poly High Solidur is an excellent fit for us in terms of its products, complementary geographical presence, management and personnel, corporate culture and clear market leadership philosophy.”
Menasha Corporation, one of America’s oldest private companies and largest privately held manufacturing companies, announced in 2004 an across-the-board strategic review of its businesses and business strategy. The review included an in-depth evaluation of each business in terms of strategic alternatives and current valuations.