07 July 2000 23:11 [Source: ICIS news]
HOUSTON (CNI)--Viskase Companies said Friday it has agreed to sell its plastic barrier and non-barrier shrink film business to Bemis Company for a total of $245m (Euro258m), with the deal expected to close in August.
Chicago, Illinois-based Viskase said the purchase price includes $228m in cash plus some $17m in accounts receivable.
The films business being sold includes production facilities in the US, UK and Brazil. But Viskase said the deal excludes any patent litigation proceedings between Viskase and American National Can Company; a decision in that case is expected late this year or early next.
Viskase chairman and chief executive F Edward Gustafson said the sale was arranged so that Viskase can concentrate on its worldwide casings business. The "new Viskase," said Gustafson, "will focus its efforts on aggressively competing in the worldwide cellulose casings market." The sale of its films unit "will place Viskase in a much stronger position to grow profitably in the future," he added.
Proceeds from the unit's sale to Sheyboygan Falls, Wisconsin-based Bemis will be used to retire debt and for general corporate purposes, Viskase said.
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