RadiciGroup (Bergamo / Italy; www.radicigroup.com) has won its “stalking horse” bid to acquire insolvent US compounder Michael Day Enterprises (MDE, Wadsworth, Ohio; www.mdayinc.com) – see Plasteurope.com of 17.12.2009. The USD 5.7m deal was completed on 15 January 2010, following an auction and subsequent court approval. For the Italian group, the takeover represents a significant step toward lifting its profile in what RadiciGroup Chemicals and Plastics CEO Luigi Gerolla described as “a notoriously conservative market that demands products made in the USA.”

An important US focus for Radici following the acquisition will be the automotive industry. Along with the chance to “acquire sizeable market share,” Gerolla said “we will become the owners of a significant number of American automotive certifications, which are vital to start new projects.” He praised the US government’s auto stimulus package for not only rationalising plants and capacity, but also for promoting “green policies” that will lead to lighter weight cars and an increased need for plastics.

Danilo Micheletti, COO of RadiciGroup Plastics North America, said the buy will allow his group to tap into MDE’s sales network and local market experience. The US company, which he said is “well entrenched” in the market for both American and Japanese models, has 250 active automotive certifications that can be used worldwide, in Asia in particular. This will allow Radici to “join the global pool of automotive suppliers.”

The ambitious Italian plastics group, whose US arm produces and sells PA 6 and PA 6.6, along with PBT and TPEs, apparently will not be content with expanding on only one continent. Among the next moves will be expansion of its presence in China – which Gerolla said is expected to become “our second most important market after Europe” – as well as India, southeast Asia and Russia.