Jul 7 2009
Samuel Manu-Tech Inc. (TSX - SMT), a leading North American industrial products and technology company, today reported that it has signed a letter of intent with Sekisui Jushi America, Inc. to acquire their 50% interest in Samuel/Sekisui Jushi Strapping LLC. The joint venture company is a market leader in the manufacture of polypropylene strapping products.
The strategic alliance with Sekisui Jushi, which was established in 2003, has played an important role in maintaining the Samuel Strapping Systems Group as a leader in the supply of diversified industrial packaging products and systems. Recently, however, Sekisui Jushi has decided to dedicate its efforts to its other business segments abroad and as such has negotiated a sale of its 50% interest. Henceforth, Samuel Strapping will operate the Samuel/Sekisui business as a wholly owned subsidiary.
While the transaction does not involve a significant purchase price, the purchase is considered of strategic importance as it allows Samuel Strapping to continue to control the production of one of its key product lines. The proposed transaction is subject to the completion of a number of pre-conditions to closing, including the completion of detailed due diligence and final agreements and is expected to close before the end of third quarter, 2009.