Royal Group divests injection molding company
Woodbridge, Ont.-based polymer processor and extruder Royal Group Technologies Ltd. (RGT) is divesting non-core bus...
Woodbridge, Ont.-based polymer processor and extruder Royal Group Technologies Ltd. (RGT) is divesting non-core businesses and assets, including injection molder Royal Dynamics.
The sales come ahead of a takeover by chemical maker Georgia Gulf Corp. that was announced in June and approved by RGT’s shareholders in early August. RGT expects to raise US$30 million from the sales, which also includes real estate that the company no longer needs.
RGT said that it expects to generate total proceeds from divestitures of $200 to $260 million in 2006. To date, the company has generated proceeds of approximately $190 million.
“We continue to evaluate opportunities to focus Royal Group on those businesses that best leverage our strengths, while at the same time taking actions to improve manufacturing efficiency to help us achieve an appropriately scaled manufacturing footprint,” Lawrence J. Blanford, RGT’s president and CEO, said.