SWM, a leading global provider of highly engineered solutions and advanced materials for a variety of industries, has acquired Argotec Llc, the US-based producer of thermoplastic polyurethane (TPU) film and sheet. Two companies signed a definitive agreement to this effect on September 21, 2015. Argotec is currently a portfolio company of Wind Point Partners, a private equity firm based in Chicago, Illinois.
Although SWM primarily serves the tobacco industry, it also manufactures specialty papers for other applications and acquired DelStar Inc in late 2013 to further expand its product portfolio and the markets it serves.
Frederic Villoutreix, chairman and chief executive officer of SWM, commented “Argotec is a highly attractive asset and its core competencies and attributes align well with SWM. Much like DelStar, Argotec is a technology and quality leader in resin-based rolled goods with strong competitive positions in attractive niche market segments. Argotec films, which are complementary to our current extruded resin production capabilities, generate attractive margins in high-value added applications that serve diverse end-markets, such as paint protection, glass lamination, medical and graphics, offering solid growth prospects and further diversification for SWM.”
Argotec will be included in SWM’s filtration segment, which will be renamed Advanced Materials and Structures (AMS). “With the addition of Argotec, we believe AMS achieves meaningful scale, with annual net sales approaching $300 million and adjusted operating margin in the mid-teens. Our AMS segment, anchored by the acquisitions of DelStar and Argotec, and enhanced by our recent bolt-on acquisitions, will have a strong foundation for continued top and bottom-line growth. These businesses are highly complementary from both a technology perspective and also in certain end-market, and our expanded leadership team is focused on extracting significant value from the combination of these assets,” added Villoutreix.
Argotec is one of the leading manufacturers of thermoplastic polyurethane films, which are used in a wide range of industries and market segments, including automotive paint protection, glass lamination, medical, graphics, textiles, and other industrial applications. Argotec has manufacturing, sales, and distribution employees in the US, Europe, and Asia.
