DelStar, a portfolio company of investment firm American Capital Strategies, is a custom manufacturer of plastic and metal components used in filtration.
Headquartered in Middletown, Delaware, DelStar has annual revenue of US$110 million. Seventy percent of DelStar’s revenue comes from filtration products, with the majority from reverse osmosis and other water filtration applications, and the remainder from other specialty industrial filtration applications.
“The acquisition of DelStar creates an attractive growth platform in an adjacent business area for SWM as we greatly expand our presence in advanced materials, focused in large part on filtration,” said Frederic Villoutreix, chairman and CEO of SWM. “Although attractive purely on a standalone basis, DelStar is an ideal cornerstone acquisition on which we can build a meaningful critical components platform with a focus on filtration.”
Mark Abrahams, DelStar president and CEO, said: “We could not be more pleased with SWM’s choice to bring DelStar Technologies into their family. The combined resources of both enterprises will strengthen our ability to pursue promising opportunities in our base business as well as potential acquisitions. Together, I know we can deliver innovative advanced solutions to our diverse customer base.”
SWM, which is the world’s largest producer of cigarette papers, says that it remains highly committed to its core tobacco operations and customers, and that tobacco will continue to represent the majority of its assets, revenue and cash flow.