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2011: A New Year, A New Chapter
January 13, 2011
Acquisition by German firm RKW serves as the capstone on a strong 2010 at Danafilms, paving the way for a promising 2011.
Whether completing a significant expansion at its Franklin, Kentucky, plant, doubling its coextruded film capacity, or celebrating 40 years of successfully mastering the Art of Blown Film, Danafilms clearly made the most of 2010. What’s more, the film manufacturer closed this eventful chapter with a thrilling conclusion — its December 29 acquisition by RKW SE, a leading European manufacturer of high-quality polyethylene and polypropylene films.
“When RKW and I were first introduced, I was encouraged that RKW had the same thinking on running a business as I do—they want to produce a high-quality product and do only the best for customers,” says Danafilms founder and chief executive officer Sherman V. Olson. “Just as importantly, they will continue the reputation and the business of Danafilms in the United States.”
Olson — who, along with all Danafilms management, will remain at the helm of Danafilms under RKW ownership — explains that RKW’s own growth and success isn’t unlike the success that Danafilms has generated with two plants in Franklin and Westborough, Massachusetts. Over the years, RKW has made calculated decisions to bring on additional capacity and constantly purchase up-to-date film technologies. Ultimately, this strategy has helped RKW grow to 19 plants across the globe, quadrupling in size over the course of 12 years. As Steve Crimmin, Danafilms sales manager believes, the acquisition delivers benefits for both parties.
“For Danafilms, this deal will allow us to grow in several different directions,” says Crimmin. “RKW-Group brings some technologies to the table that we don’t currently have, which in turn will bring Danafilms into some new markets in North America and beyond.
“For RKW, the acquisition means they’ve become a truly global company, with plants in Europe, Vietnam and Egypt, for instance,” says Crimmin. The acquisition of Danafilms marks RKW’s first major entry into the North American film market. “With the Danafilms name, they'll certainly have domestic recognition here.”
Though Olson has fielded unsolicited requests from potential merger partners and venture capital groups before, he emphasizes that he wasn’t actively seeking to sell the company he started virtually from scratch in 1970. As Olson points out, so much more than a fair payout for selling his growing company was at stake.
“With all those inquiring companies, I didn’t think they would be a good fit for Danafilms and my employees,” notes Olson. “I have a lot of long-term employees here, and I have lots of faith in all these people. I wanted to do the right thing for those who helped the success of the company.”
Similar to a concern for the employees, Danafilms also factored in how customers would stand to benefit from the new affiliation. Says Crimmin, the new Danafilms/RKW-Group pairing is an outstanding match for clients, too.
“Customers have asked, ‘Is this going to affect our supplies?’ or ‘Is this going to affect some agreements we have?’” says Crimmin. “And the answer across the board is, ‘No.’ You’re going to be dealing with the same plants, the same people you’ve always dealt with. You will see a seamless transition.”
As an old business adage reminds us, change is the only constant, but one that Danafilms’ employees and customers alike will certainly embrace, considering the additional capacity and product offerings that Danafilms and RKW stand ready to enjoy together.
“Having just completed a $7 million expansion at our Kentucky plant, we have the floor space to install additional machinery right away,” explains Olson. “These lines could soon produce the films that are not really being made over here in the United States. To say the least, the potential is really great for both companies.”
Visit the
RKW-Group Website.