DelStar, Inc. and SWM announced a definitive agreement, with SWM acquiring DelStar from publicly traded Bethesda, Md.- based investment firm American Capital Strategies. DelStar is based in Middletown. Purchase price is $231 million for DelStar, which has annual sales of $110 million.
DelStar will become a wholly owned subsidiary of SWM. Closing is expected by the end of the year.
The Middletown Transcript reported that the company employs about 500 worldwide, with about a third of that total in Middletown.
“We are excited to welcome DelStar to the SWM family,” said Frédéric Villoutreix, SWM’s CEO. “DelStar is an exceptional company with unique products, a strong management team, and a leading global presence in the increasingly growing filtration and medical industries. They share our customer-centric approach and collaborate with their customers to produce innovative solutions focused on long-term mutual growth. This is a financially and strategically compelling transaction and a unique opportunity that will deliver excellent value for our shareholders. We look forward to using DelStar as a platform for future growth across their attractive markets.”
Mark Abrahams, CEO of DelStar Technologies stated, “We could not be more pleased with our selection of SWM and Frédéric as our long term partner. Their strong support will place DelStar in the optimal position to expand even further and strengthen our competitive market position. SWM will help us expand our product offerings and allow us to advance our foreign presence. Our combined technologies and operational knowledge will certainly allow us to deliver even more solutions to our diverse customer bases.”
SWM is a provider of proprietary solutions primarily for the tobacco industry. It also manufactures specialty papers for other applications. SWM and its subsidiaries conduct business in over 90 countries and employ about 2,500 people worldwide, with operations in the United States, France, Brazil, Canada, Poland and two joint ventures in China. The company is based near Atlanta.
DelStar Technologies is a custom manufacturer of plastic and metal components used in filtration, automotive, healthcare, industrial, food, electronics and textile markets. Their products include a wide variety of plastic nets, nonwovens, tubes, and cores, plus specialized plastic and metal machined parts.
DelStar Technologies, Inc., based in Middletown, DE, has manufacturing operations at that location, as well as in Austin, Texas; Richland, Pennsylvania; El Cajon, California; and Suzhou, China.