CADILLAC PLASTIC
Major business segments sold by Hanna to GE Plastics / European jvs not part of the deal
Leading US compounder and distributor M.A. Hanna Company (Suite 36-5000, 200 Public Square, Cleveland, Ohio 44114-304, USA), has sold major business segments of its subsidiary Cadillac Plastics (2855 Coolidge Highway, Suite 300. Troy, Michigan 48084, USA) for an undisclosed sum to GE Plastics (GEP, Pittsfield, Massachusetts, USA). The deal is subject to approval by cartel authorities.
Cadillac, part of Hanna since 1987, is world´s largest trading house for semi-finished plastics (sheets, rods, tubes and film), with sales of USD 378m in 1999. GE is acquiring most of the worldwide activities, including business segments in North America, Asia, the UK and The Netherlands. But Hanna plans to keep its three European Cadillac Plastics 50:50 joint ventures with Röhm GmbH (D-64293 Darmstadt) as well as its stake in US aerospace supplier Richmond Aircraft. Without giving details, Hanna said it sees “other strategic possibilities” for the three partnerships in Germany (Cadillac Plastic GmbH, Alfred-Nobel-Str. 17. D-68519 Viernheim), France and Spain.
The reason for Hanna´s holding onto the Röhm joint ventures for the time being could be that Cadillac Plastic has cooperated extensively with GEP in the distribution of polycarbonate sheet in the US since the 1960s. As reported in Plasteurope.com 03, 2000, Röhm and GEP competitor Bayer (D-51368 Leverkusen) have intensified their cooperation in PC sheet by adding extra muscle to their Makroform jv. A takeover by GEP of the Hanna share in the Röhm joint venture could have led to serious conflicts of interest that would have raised eyebrows at competition authorities. Barring unforeseen circumstances, Röhm, Bayer or Makroform appear to be likely candidates to acquire the Hanna shareholdings.
Cadillac, part of Hanna since 1987, is world´s largest trading house for semi-finished plastics (sheets, rods, tubes and film), with sales of USD 378m in 1999. GE is acquiring most of the worldwide activities, including business segments in North America, Asia, the UK and The Netherlands. But Hanna plans to keep its three European Cadillac Plastics 50:50 joint ventures with Röhm GmbH (D-64293 Darmstadt) as well as its stake in US aerospace supplier Richmond Aircraft. Without giving details, Hanna said it sees “other strategic possibilities” for the three partnerships in Germany (Cadillac Plastic GmbH, Alfred-Nobel-Str. 17. D-68519 Viernheim), France and Spain.
The reason for Hanna´s holding onto the Röhm joint ventures for the time being could be that Cadillac Plastic has cooperated extensively with GEP in the distribution of polycarbonate sheet in the US since the 1960s. As reported in Plasteurope.com 03, 2000, Röhm and GEP competitor Bayer (D-51368 Leverkusen) have intensified their cooperation in PC sheet by adding extra muscle to their Makroform jv. A takeover by GEP of the Hanna share in the Röhm joint venture could have led to serious conflicts of interest that would have raised eyebrows at competition authorities. Barring unforeseen circumstances, Röhm, Bayer or Makroform appear to be likely candidates to acquire the Hanna shareholdings.
31.05.2000 Plasteurope.com [17367]
Published on 31.05.2000