MINNEAPOLIS, Dec. 12 -- Flexible packaging giant Bemis Co. said today that the sale of its pressure sensitive materials business, known as MACtac, to Finland's UPM-Kymmene will be delayed until 2003 to accommodate an ongoing review by U.S. regulatory authorities. Bemis expects to complete the transaction during first half 2003.
The $420 million deal, which was announced Aug. 21, was approved by European regulatory authorities on Oct. 16.
According to UPM-Kymmene, acquisition of the MACtac unit will "significantly" increase the U.S. self-adhesive label market share of its subsidiary, Raflatac, which makes pressure-sensitive materials. The MACtac unit has five production facilities in the U.S., one in Belgium, and a joint venture in Mexico. Its revenues in 2001 were about $500 million.
Bemis has recently been moving to bolster the size and scope of its flexible packaging operations. Earlier this year, the company purchased DuPont's Clysar shrink-film business for $142 million. Last year, Bemis acquired Duralam Inc., an Appleton, WI, manufacturer of barrier films for food packaging, for a reported $69 million.