Plastics packaging producer Polimoon makes Polish acquisition

Polimoon strengthens position in Eastern Europe by acquiring a majority stake in a manufacturer of premium packaging located in Poland. The former enterprise of PPH Lima-Pol sp. z o.o ("Lima-Pol") has been acquired by a new company, Lima-Pol Polimoon sp. z o.o, ("Lima-Pol Polimoon") which is owned 70% by Polimoon and 30% by the previous owner of Lima-Pol, Mr Tadeusz Jobda. Over the next three years, Polimoon will acquire the remaining 30 percent of the shares in Lima-Pol Polimoon.

Polimoon consumer packaging constituted 47% of Polimoon's sales in 2004, making it the largest business area of the Group.

Lima-Pol has annual sales in excess of 13 million euro with an operating profit (EBIT) in excess of 10% and has close to 200 employees. The company has grown in average over 20% annually the last years. It is expected that the company will continue to show strong growth. The growth is linked to a strong demand for personal care packaging from international blue chip companies which have invested heavily in filling operations in Eastern Europe and Russia. Until recently these customers have lacked a local supplier base providing premium packaging.

Lima-Pol develops and manufactures packaging to the personal care market, particularly focussed on packaging for cosmetics. Lima-Pol develops and manufacturers a wide variety of cream jars and personal care bottles using several technologies. The company has in-house resources and skills to develop and industrialize products. The customer base is located in Poland, Russia and other European countries, and includes brands like L'Oreal, Alberto Culver and Avon.

"Lima-Pol provides an entry for the Polimoon Group into the growing Eastern European market and the consumer packaging segment. The incorporation of Lima-Pol into Polimoon's European business portfolio, focusing on plastic packaging and components, should reap benefits for both Lima-Pol's customers and suppliers in the coming years. Lima-Pol Polimoon will build on existing relationships with its customers to provide an excellent service, supply quality products, and to promote product innovation and development. At the same time it will strengthen our relationship to existing customers in Polimoon" says Arne Vraalsen, President and CEO Polimoon.

The acquisition of Lima-Pol is a step further in Polimoon's strategy to grow the consumer packaging segment in Europe and to build a stronger presence in Eastern Europe. In addition to broadening our customer relationships, benefits are expected for existing customers by increasing the geographical presence and bringing in a company based on quality, growth and innovation. Lima-Pol matches Polimoon's high standards of production efficiency through automated and well maintained machinery and a highly skilled workforce.