In an unexpected turn of events, the sale of Battenfeld´s (D-58540 Meinerzhagen) injection moulding business by its parent company SMS AG (D-40088 Düsseldorf) to US institutional investors Madison Capital Partners (Chicago) has fallen through (see Plasteurope.com 19, 1999). Observers say the planned “swap” of the unit for the European extrusion business of Milacron Inc. (HQ: Cincinnati, Ohio 54009-1086/USA) apparently has failed. The latest story is that SMS will acquire the Milacron offshoot Cincinnati Extrusion GmbH (A-1239 Vienna) for USD 47m. The company which employs 325 and has sales of EUR 60m is to be operated as an independent company under its existing name.

SMS said it is being forced to keep the Battenfeld injection moulding segment for the present as Madison was unable to raise sufficient cash for the acquisition. However, in a counter-statement, the US buyout group said it would take “legal action” against such “categorically untrue” statements. It accuses SMS and its newly founded Battenfeld IMT Holdings LLC, along with Deutsche Bank and Comerica Bank, for the failure to complete the deal as planned. In return, SMS has termed Madison´s behaviour “inexplicable.”

As the amazing “drama” unfolds, it is becoming more and more difficult to understand what play is being made. Will the two sides come to an agreement in the end? Will the deal be a swap after all? A long-postponed Battenfeld press conference on 14 January was expected to provide some answers. Plasteurope.com will follow the story.