PR Newswire

DALLAS, TX - Spinnaker Industries, Inc. (Amex: SKK and SKK.A) announced today it has signed a definitive agreement to acquire the world-wide pressure sensitive electrical tape business of tesa tape, inc., of Hamburg, Germany.

The tesa business to be acquired maintains U.S. production facilities in Carbondale, Ill. Spinnaker said the acquisition will be a wholly-owned, unrestricted subsidiary acquired to complement the Spinnaker line of adhesive backed industrial tapes. Consideration for the business will be cash and SKK common stock. Pending completion of the financing, the closing of the purchase is scheduled for late in the second calendar quarter of 1998.

The business being acquired sold approximately $20 million of electrical tape for insulating motors, coils and transformers in 1997, with major customers in Europe, the U.S. and Canada.

Spinnaker Industries is a leading manufacturer of adhesive backed paper label stock and industrial tapes for the packaging industry, and a major supplier of stock for pressure sensitive U.S. postage stamps.