move to buy stake in paper cup maker
1998 Fangda Group Co. , Ltd.
A holding company has been set up to acquire a 48% stake in sweetheart Holdings
Paper Cup companies, which receive undisclosed amounts from US industrial partners.
Hans H said the new company, SF Holdings, will buy Fonda and will buy 48% of sweetheart\'s voting shares and 90% of all sweetheart\'s shares.
Haisensen, chief financial officer of Fonda group.
It will also manage sweetheart.
S. industrial company, which has been a major shareholder of sweetheart since 1993, will retain 52% of its voting rights. Heinsen said.
In recent years, Fonda has made a series of acquisitions and become a national supplier of paper products.
Both Mr Fonda and Mr Sweetheart are held closely and they will benefit from collective purchasing power and reduced spendingHeinsen said.
Fonda produces decorative and white paper plates, special plates and napkins, and places mats, while Sweetheart\'s products are based in Owings Mills, Md.
Paper, plastic and foam cups are included.
The deal will be in the first quarter of 1998.
Sweetheart and SF Holdings will retain a separate headquarters, although no decision has yet been made as to where the headquarters will be located
Hesen said it is too early to say whether such cooperation will lead to layoffs or factory closures in the two companies.
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A version of this article appears on page D00002, national edition, January 2, 1998, with the title: buy a stake in paper cup manufacturers.