Aldus buys API Foils Europe from administrators

An Australian manufacturer of packaging and labelling equipment, Aldus Pty Ltd, has expanded its global reach with the purchase of ADI Foils Europe after the UK-based API group of companies entered administration in January.

Aldus Pty Ltd is an Australian company that has manufactured label applicators and other equipment for 49 years with operations throughout Australia, New Zealand, Malaysia and USA. It also purchased Australian foil manufacturer and global distributor Milford Astor Foilmakers last year.

This latest acquisition excludes API’s Dutch and Asian operations and will be named API Foilmakers Limited with production soon to restart at the company’s factory in Livingston, Scotland.

The API group of companies were placed in administration in January with Ernst and Young saying the demise of the business was related to changes in regulations, particularly around cigarette packaging rules, and loss of some clients.

API Foilmakers Limited will be led by Will Oldham, who was managing director of API Foils between 2012 and 2015.

“I am delighted to be back leading the API’s European foil business which has been at the forefront of quality graphic stamping foils for many years,” Oldham said.

“Joining the Aldus Group will give our team the financial strength and support to ensure the we can continue to deliver the highest quality product to our customers across Europe and the world. We are particularly pleased to be restarting the Scottish manufacturing facility and ensuring the continuing operation of our distribution hubs across Europe, delivering 160 jobs, including more than 100 in Scotland.”

Aldus CEO Frank Floriano said API’s market leadership in producing high quality foils was one of the reasons for the acquisition.

“We are committed to provide additional capital and support to ensure that API will continue to supply its existing customers and invest in the development of market leading products,” Floriano mentioned.

API Foilmakers Limited commercial director Mark Gilbert added that work is underway to get production back to normal in its Livingston premises in Scotland.

“This support has just confirmed to us that this is a special business. We are looking to get back to normal production in Livingston as soon as possible, but it will take some time until we can offer a full range of products from manufacture. We will communicate every step with our customers in all markets and work with them to mitigate any further disruption than is necessary,” Gilbert added.

Adam Newman, Aldus group strategy manager, confirmed Aldus had finalised the purchase with Ernst and Young and said moving into the decorative packaging space did mark a new direction for the company.

“The whole API group went into administration and Aldus have purchased the European company from the group. They have started a new company which is called API Foilmakers Ltd which is owned by the Aldus group,” Newman told Sprinter.

“Aldus Group owns Tronics which manufacture label applicators so we’ve been in the packaging industry for 49 years but moving into the decorative space is new ground for us. Aldus will continue to grow in the packaging and labelling space.”

At the time of the API group entering administration in January, Ernst and Young administrator Colin Dempster told the BBC (British Broadcasting Corporation) that the group had experienced difficulties in recent times due to changes in regulations, specifically in relation to tobacco packaging.

“The group has experienced difficulties in recent times due to the integration of its purchases, changes in regulation (specifically in relation to tobacco packaging), the loss of major customers and changes in the market,” Dempster told the BBC in early February.

“We will continue to trade certain parts of the business on a reduced capacity, supplying key customers who are supporting the business while we consider the Group’s options.

“155 employees have been made redundant today across all four UK locations and we are providing assistance to those being made redundant.”

Photo credit Aldus Pty Ltd (L:R) Frank Floriano, CEO Aldus; Hanna Bardell, Livingston MP; Neil Madden, API financial director; Lawrence Fitzpatrick, West Lothian Council; Jim Henderson, West Lothian Council; Jamie Hepburn, Minister for Busienss, Fair work and Skills; Mark Gilbert, API commercial director; Will Oldham, API managing director; Riccardo Sottocorno, API hub general manager; Angela Constance, Scottish MP; Gordon Clark, Scottish Enterprise; Lindsay Dick, Scottish government; Nicholas Moore, Aldus chairman.

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