In what it said was just one of the business opportunities it is exploring in the NAFTA region, Radici Group Plastics (Bergamo / Italy; www.radicigroup.com) confirmed that it has entered into a USD 5.7m “stalking horse” asset purchase agreement to buy the Ohio-based compounder Michael Day Enterprises (MDE, Wadsworth / USA; www.mdayinc.com).

After filing for Chapter 11, MDE is to be auctioned off on 8 January 2010. Although Radici is the preferred buyer, this does not necessarily mean it will be able to achieve the agreement, under the terms of which Radici Plastics would acquire all of MDE’s tangible and intangible assets including a series of continuity guarantees for a set period of time.

Through its subsidiary Radici Plastics USA, Radici produces and sells PA 6 and PA 6.6 polymers and copolymers, PBTs and TPEs in the US. Radici Plastics has taken a keen interest in expanding its North America operations, in part because it believes that 2009 sales of its US subsidiary will exceed those of the previous year by 20%. The group mainly is interested in the North American automotive sector, which it says is likely to undergo significant changes in the near future towards lighter vehicles and electric cars, making plastics increasingly important components.