Pechiney Plastic Packaging Inc. (PPPI, Chicago, Illinois / USA; www.pechiney.com) plans to acquire Novacel (www.novacel.com), based at Guadalajara, Mexico, for USD 90m. Novacel, regarded as Mexico´s leading custom flexible packaging manufacturer, primarily for food markets, employs 1,000 people at two manufacturing sites and had sales of USD 110m in 2002. The transaction is scheduled to close this summer. According to Ilene Gordon, president of Pechiney Plastic Packaging, Novacel is an ideal fit for the company due to its strong financials, close relations with key customers, focus on value-added packaging and its leading positions in key market segments.

The portfolio of Pechiney Plastic Packaging, which is part of the Paris, France-based Pechiney group´s packaging segment and has annual sales of USD 1.3 bn, includes a wide range of single- and multi-layer plain and printed films and laminations, bags, thermoformed trays and bottles. Sales are to three major markets, including meat and dairy, food and healthcare and specialty. The Pechiney packaging offshoot employs around 5,000 people in 38 facilities in North America, Europe, South America and Australasia.