Swiss packaging supplier and aluminum producer, Alusuisse-Lonza Holding Ltd., announced on 2 May that it will acquire US-based Wheaton, a 108-year-old specialty glass and plastic-packaging manufacture…
Swiss packaging supplier and aluminum producer, Alusuisse-Lonza Holding Ltd., announced on 2 May that it will acquire US-based Wheaton, a 108-year-old specialty glass and plastic-packaging manufacturer, for US$ 400 million, in order to boost its role as a world leader in pharmaceutical packaging. The transaction is expected to lead to neutral earnings in the first year after acquisition and to be earnings-additive thereafter. Alusuisse said Wheaton had a leading position in the North American market as a producer of specialty glass and plastic packaging for pharmaceuticals and cosmetics. In fact, Wheaton employs 5,750 people at more than 40 production sites in the US, France, Brazil, Mexico, Puerto Rico and China. Wheaton, privately owned and based in Millville, New Jersey, US, generated sales of nearly US$ 450 million in 1995, with products such as small and medium-sized moulded glass, glass tubing and ampoules and moulded plastic containers. The Wheaton company also produces packaging for Vicks Formula 44, Old Spice aftershave, Polo perfume, Revlon cosmetics and Anacin. The products contributed to Wheaton“s sales of US$ 450 million in 1995, which was not enough to solve the company“s debt problems. The company lost US$ 16 million between 1990 and 1994, tripling its debt to US$ 104 million. During the same period, sales increased only 3%. “The merger means a lot of stability,” said Tom Clardy, vice president of human resources with Wheaton. “The two companies have complimenting businesses so there are no duplicate facilities” to consolidate. Alusuisse chief executive Theodor Tschopp said “Wheaton“s impressive reputation in and share of these markets will make us the world“s leading packaging supplier to the pharmaceutical industry with the widest range of product offerings”. Alusuisse has gone from being an aluminium maker to a diverse group with the addition and expansion of packaging and speciality chemicals since 1991. In 1995 its net profit soared 86% to SFr 385 million on sales totalling SFr 7.5 billion, almost unchanged from the year before. The acquisition must still be approved by Wheaton shareholders and US regulatory authorities.