The Neschen Group has announced that it disposed of the main assets of its US subsidiary to a US buyer on 01.10.2013. This includes the production plants in Elkridge and Wisconsin, the SEAL brand name and the media and laminator business in the USA. The buyer and conditions of sale have not been disclosed.
Neschen AG had acquired major parts of the US business from their competitor Hunt Corporation (USA) in 2001. This included the SEAL brand name and several sales and production locations throughout the world. The US subsidiaries most recently contributed around 20 percent to the group's turnover.
The sale of the US subsidiaries means that their annual losses of 1.5 - 2.0 million euros will no longer have to be covered by the parent companies Neschen AG and Neschen Benelux. The funds thus made available are to be invested in Neschen AG's core business.
However, the sale was not just aimed at rectifying funding shortfalls. Neschen AG also concluded a cooperation agreement with the buyer for the future supply of laminators under the brand name SEAL. In return, the buyer will continue to operate US business with Neschen products.
"We are very happy with this agreement. This is a major step forward for Neschen! We expect that the cooperation agreements concluded in addition to the purchase agreement will lead to a simplification of US business for Neschen AG," said Henrik Felbier, Chairman of the Board of Directors of Neschen AG, after the agreement was signed.
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