Keter Plastics (IL-46766 Herzliya; www.outstanding-keter.com) is in talks to acquire seven international plastics industry companies, including a USD 1.2 chunk of Newell Rubbermaid (Freeport, Illinois / USA; www.newellco.com), CEO Sami Sagol told the Israeli newspaper “Globes”. Sagol said Keter intends to “exploit the window of opportunity created by the market” and, if all goes well, it “will be a USD 3-4 bn business.” Last year the CEO devised a strategy to acquire companies in financial distress and move their production to Israel. Sagol said his company has submitted a bid for Rubbermaid, but has not yet received a response.

The Newell Rubbermaid conglomerate – Rubbermaid was acquired in 1999 – had sales of USD 7.75 bn in 2003. Since 2001, it has been undergoing comprehensive restructuring, which has involved the closure or sale of 84 factories and the shedding of 12,000 jobs. Much of this has already been achieved, with 78 plants and 10,800 employees now gone. In 2003, further businesses with a sales volume of USD 875m were placed on the “for sale” list. Up to March of this year, assets worth USD 695m had been sold.

With its core business in plastic home and garden furniture, tools and plumbing supplies, Keter has estimated annual sales of around USD 700m. Sagol said the company is negotiating with Apax Partners, JP Morgan Chase & Company and Citibank about participating in a Rubbermaid deal. Keter is also mulling the acquisition of US garden furniture maker Sirocco, which has USD 50m in annual sales. This deal, too, would likely be done with a partner, as in Sagol´s words, a stock market issue for the Israeli firm “is unsuitable.” In late 2003 Keter acquired French bathroom equipment manufacturer Allibert (F-38240 Voreppe; www.allibert.fr), making it the biggest European player in plastic consumer goods (see PIE 03, 2004).