Alpharetta, Georgia -- Schweitzer-Mauduit International (SWM) has signed a deal to buy Argotec, which makes thermoplastic polyurethane (TPU) film and sheet, for $280m.
Frederic Villoutreix, SWM chairman and ceo, said: “Much like DelStar, Argotec is a technology and quality leader in resin-based rolled goods with a strong competitive position.”
SWM said it expects the deal to close in Q4. Argotec will be included in the company’s filtration segment, which also includes DelStar, and will be renamed advanced materials and structures (AMS).
“Argotec films, which are complementary to our current extruded resin production capabilities, generate strong margins and are used in a diverse set of attractive niche market segments, such as paint protection, glass lamination, medical and graphics.”
According to SWM, Argotec generates annual sales of about $115m, has an earnings before interest, taxes, depreciation and amortisation (EBITDA) margin nearing 20% and annual growth projected to be 5-7%.
Argotec is based in Greenfield, Massachusetts. It bought TPU sheet and filmmaker/urethane tubing manufacturer Stevens Urethane last year – based in nearby Easthampton.
With Argotec, the AMS unit will have annual sales approaching $300m, according to SWM.
SWM employs about 3,000 people worldwide, with operations in the US, UK, France, Russia, Spain, Luxembourg, Brazil, Canada, Poland and China, including two joint ventures.