Argotec LLC,  a manufacturer of hermoplastic polyurethane (TPU) films and sheets in Greenfield MA, USA, has announced the signing of a definitive agreement to be acquired by SWM. Headquartered in Alpharetta, GA, USA, SWM is a provider of engineered products and advanced materials for a variety of industries. The transaction is expected to close once customary closing conditions are met, which is anticipated to occur during the fourth quarter of 2015.  Argotec is currently a portfolio company of Wind Point Partners, a private equity firm based in Chicago. 

Argotec products are known for their value-added properties such as durability, UV protection, heat resistance, and optical clarity. They are used in high-value niche applications, including vehicle paint protection, glass lamination for superior strength, medical devices and wound care, textile lamination, graphic printing and overlamination and other industrial uses.

Frederic Villoutreix, chairman of the board and CEO of SWM, comments, “We are pleased to announce the acquisition of Argotec as another key milestone in the transformation of SWM and the continued buildout of our non-tobacco business.  This represents our fourth transaction since the late 2013 acquisition of DelStar.  Argotec is a highly attractive asset and its core competencies and attributes align well with SWM.  Much like DelStar, Argotec is a technology and quality leader in resin-based rolled goods with strong competitive positions in attractive niche market segments.  Argotec films, which are complementary to our current extruded resin production capabilities, generate attractive margins in high-value added applications that serve diverse end-markets, such as paint protection, glass lamination, medical and graphics, offering solid growth prospects and further diversification for SWM.

“Argotec will be included in the Filtration segment, which will be renamed Advanced Materials and Structures, or AMS, as of our fourth quarter earnings release to reflect how we are strategically managing the business and focusing on our core technologies.  With the addition of Argotec, we believe AMS achieves meaningful scale, with annual Net Sales approaching $300 million and adjusted operating margin in the mid-teens.  Our AMS segment, anchored by the acquisitions of DelStar and Argotec, and enhanced by our recent bolt-on acquisitions, will have a strong foundation for continued top and bottom-line growth.  These businesses are highly complementary from both a technology perspective and also in certain end-market, and our expanded leadership team is focused on extracting significant value from the combination of these assets.  Similar to our past acquisitions, we expect Argotec to benefit from SWM’s global footprint, international sales capabilities, Operational Excellence expertise, and our intention to invest capital for growth.  We look forward to welcoming the talented individuals from the Argotec organization who will become part of SWM and our growing Advanced Materials and Structures segment,” Villoutreix says.

Guy Broadbent, president and CEO of Argotec, comments, “We are proud of our growth under Wind Point Partners and our continued product leadership serving the demanding technical needs of our customer base. We are excited to be a part of the SWM team, which we believe shares our rigorous focus on quality and high technical standards. We will be well positioned to accelerate our growth in combination with the resources of SWM.”