Regulatory Issues
Continued from page 8
October 2019 Spray 39
Mergers & Acquistions
PLZ Aeroscience Corp. has acquired Precise Packaging from an
affiliate of Trive Capital for an undisclosed sum. The transaction
will boost PLZ’s North American capabilities in specialty aerosol and
liquid manufacturing, according to the company.
Givaudan has acquired Fragrance Oils, a British manufacturer and
marketer of specialty fragrances for fine fragrances, personal and
home care applications. It includes a manufacturing facility in Radcliffe,
UK with more than 250 employees and annual sales of GBP 50
million ($61.6 million) in more than 90 countries. Terms of the deal
were not disclosed.
In other news, Givaudan is expected to fully acquire German
fragrance company Drom by the third quarter of 2019. Drom is
headquartered near Munich, has manufacturing facilities in China,
Germany, U.S. and Brazil, employs nearly 500 people and has annual
sales of approximately €110 million ($123 million). Terms of the deal
were not disclosed.
Givaudan also has completed the acquisition of Vietnamese
naturally-derived flavors company Golden Frog to grow its capabilities
in the Asia Pacific. Terms of the deal were not revealed. Golden
Frog, which employs 156 people, experienced sales of CHF 10 million
($10.13 million) in 2018.
cleaners and finish care products under the brands California Gold,
CMX, Speed, PowerBall, Back-to-Black, Marine and Professional.
SEM Products will oversee distribution of Mothers products to its network
of collision repair and Paint Body & Equipment (PBE) industry
customers for both auto-enthusiasts and professional detailers.
Tekni-Plex has purchased automation equipment solutions manufacturer
MMC Packaging Equipment Ltd., Laval, Canada, for an undisclosed
sum. MMC will become part of Tekni-Plex’s Tri-Seal business.
The deal will add 70 employees to Tekni-Plex. MMC GM Christiane
El-Tekly will continue to oversee MMC operations.
Puig has made a minority investment in Loto del Sur, a Colombian
premium beauty company with products made using locally-sourced
botanicals. Puig will support the growth of Loto del Sur as it expands
into international markets. Terms of this long-term partnership were
not disclosed.
Jelmar LLC has acquired the ESPRO Sports Cleaner brand from
Environmental Sports Products (ESPRO), adding a sports stain
remover to the company’s portfolio. Jelmar has placed ESPRO under
its CLR Brands umbrella. ESPRO is currently exclusively sold at Wal-
Mart. Terms of the deal were not disclosed.
finalized in August. I have not seen the final rule, but it will come
into effect on May 1, 2020. Therefore, start preparing now. It will
happen.
New York & New Jersey VOC regulations
New York State has stated that it will adopt a new version of its
Consumer Products regulation. No timing has been set.
New Jersey is also planning to update its regulation. On Sept. 6,
2019, New Jersey had a public meeting to discuss its proposal, as
well as a pre-regulatory proposal. The Garden State is considering
adopting the Ozone Transport Commission (OTC) Rule #5. If this
happens, New Jersey will be the first State to adopt it. Remember,
all of the OTC rules are modeled after current CARB rules. Thus,
if you can comply with CARB then you will also comply with all
the OTC Model Rules including #5.
Industry is pushing for OTC Model Rule #4 because numerous
States are using it. However, the OTC stated it might be willing to
put off the effective date of this rule for possibly up to three years. I
think we should consider this option. Comments on this proposal
are due by Oct. 4, 2019.
In addition, New Jersey will adopt OTC AIM Model Rule #2 for
Coatings.
DOT
On Jan. 1, 2011, the U.S. Dept. of Transportation (DOT) published
a final rule to eliminate the use of ORM-D for Consumer
Commodity Shipments. Originally the deadline was Dec. 31, 2013
but the deadline has been extended to Dec. 31, 2020.
Starting Jan. 1, 2021 ORM-D marking should no longer be
used. This gives you more than year to move everything through
the pipeline. Spray
Gordon Labs has undergone new ownership by a small group of financial
backers led by CEO Michael Pereira. The 100-year-old company plans
accelerate innovation, boost communication, increase production capacity
for personal care brands and acquire talent. Terms of the investment were
not disclosed.
A partnership between Coty and direct-selling company Younique
has dissolved due to differences in the companies’ business models
and focuses. Coty plans to sell its controlling stake to Younique’s
original founders. Terms of the anticipated transaction were not
revealed. Coty’s CEO Pierre Laubies said the partnership accelerated
Coty’s digital strategy; however, the company’s new focus is a financial
turnaround plan.
Tokyo-based DIC will acquire BASF’s global pigments business for
€1.15 billion ($1.27 billion). The transaction will close in the fourth
quarter of 2020 and is subject to the approval of the relevant competition
authorities. DIC’s business is comprised of three segments:
Packaging & Graphics, Functional Products and Color & Display,
which includes a portfolio of pigments and company Sun Chemical.
BASF’s pigments business has 2,600 employees worldwide and generated
sales of approximately €1 billion ($1.10 billion) in 2018.
SEM Products is now the exclusive distributor of Mothers professional
products in the U.S. and Canada, the maker of polishes, waxes,