£60m pay day for manufacturer
INNOVIA, the Cumbria-based manufacturer which will supply the polymers to the Bank of England for the new £5 and £10 plastic bank notes, is to sell its Cellophane business for £60m.
The sale to Futamura Chemicals Co, itself a manufacturer of plastic and cellulose films servicing the food packaging industry, will see around 270 of the 900 staff at its Wigton headquarters transfer to the Japanese company.
Innovia’s cellophane business will give Futamura manufacturing centres in Europe and the US, markets it is keen to develop.
Yasuo Nagae, president of Futamura Chemical Co, said: “The acquisition of the Innovia’s Cellophane business will enhance our product range and presence across the globe. It supports our ambition to serve our key customers through local manufacturing facilities offering the highest standards of delivery by experienced personnel. We look forward to welcoming Innovia’s Cello employees into our family.”
Following the sale, Innovia will focus on its polymer bank note business and on building on its ‘double bubble’ biaxially oriented polypropylene (BOPP) films business.
By the end of 2016, Innovia will have manufactured more than 50 billion Guardian banknotes for central banks around the world.
From its new facility in Wigton, Cumbria Innovia will be manufacturing the new polymer banknote substrate for the Bank of England beginning with the £5 note due to be issued in September 2016 and the new £10 note in 2017.
Mark Robertshaw, chief executive of Innovia Group, said: “The sale of our Cellophane business is an important strategic step for Innovia. Futamura is an excellent long term owner for Cellophane, with its core business focussed on cellulose and plastic films.
“In line with our strategy, we will continue to focus on building our polymer films and banknote business where we see significant growth potential. In particular, the benefits of our polymer technology for banknotes have proven to reduce counterfeiting levels significantly and to reduce substantially the lifetime costs to central banks which we expect will continue to drive long term demand for polymer banknotes across the globe.”
Grant Thornton’s Manchester-based corporate finance team, comprising Matthew Bryden-Smith, Anthony Yu and Daniel Brecker, were buy-side advisers on the deal, which is due to complete in June.
