Bemis sells pressure sensitive materials business for $170M

In a move designed to fund the growth of its flexible packaging segment, packaging supplier Bemis Co. Inc. is selling off its pressure sensitive materials business to private equity firm Platinum Equity LLC for US$170 million.

The pressure sensitive materials business – known as MACtac – includes manufacturing facilities located in Scranton, Penn.; Columbus, Ind.; San Luis Potosi, Mexico; Soignies, Belgium; and Genk, Belgium, along with offices located in Stow, Ohio, and a worldwide sales and distribution network.

“Bemis is now positioned to dedicate all of our resources to accelerating strategic growth in our core flexible packaging business,” William Austen, president and CEO of Neenah, Wis.-based Bemis, said in a statement. “Our focus on increasing sales of value-added products for high barrier, medical, and pharmaceutical applications around the world will support our improving performance metrics as well as our organic and inorganic growth objectives. This transaction will provide an opportunity for the pressure sensitive materials management team to execute its growth strategy as part of the Platinum Equity portfolio.”

Platinum Equity is headquartered in California.

The transaction is expected to close during the fourth quarter of 2014.