Cargal Ltd. (TASE: KRGL.B1) subsidiary Plasto Sac Ltd. (TASE:PLST) has signed an agreement to acquire polypropylene manufacturer Salina Industries (1972) Ltd. for NIS 30 million.
Salina general manager Jaime Guiterman, who founded the company in 1972, sought to ensure the future of the company after his children showed no interest in running it. Linking up with Cargal fulfills this objective, and Cargal will place professional managers in the company after an agreed-upon transition period.
Cargal is Israel's largest manufacturer of flexible packaging through its subsidiaries. Plasto-Sac manufactures heavy duty films and bags for chemicals, fertilizer, detergents and plastic raw-material packaging, breathable films and bags to extend shelf life of fruit and vegetables, and a wide range of other products. while Salina manufactures polypropylene bags, films, and other products. The company produces 150 million units a month, two-thirds of which are exported to 20 countries. The company's revenue is estimated at NIS 50-100 million a year.
Salina's products preserve the freshness of fruits, vegetables, and flowers. Customers include retailers Wal-Mart Stores Inc. (NYSE: WMT), Tesco plc (LSE: TSCO), and Carrefour SA (Euronext: CA).
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2010
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