Neschen has sold the main assets of its US subsidiary to a US buyer. This includes the production plants in Elkridge and Wisconsin, the Seal brand name and the media and laminator business in the USA. 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 Neschen and Neschen Benelux. The freed-up funds will now be invested in Neschen core business.
Neschen said the sale was not just aimed at rectifying funding shortfalls however. It has signed a cooperation agreement with the buyer for the future supply of laminators under the Seal brand. In return, the buyer will continue to operate US business with Neschen products.
"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," said Henrik Felbier, chairman.
Neschen originally acquired major parts of the US business from its competitor Hunt Corporation (USA) in 2001. This included the Seal name and several sales and production locations throughout the world. The US subsidiaries most recently contributed around 20% to the group's turnover.