Glaston Corp. has signed an agreement to divest its pre-processing business in Mexico to Italian company Bavelloni S.p.A. Glaston Mexico S.A. de C.V.’s net sales for January-September 2019 were approximately $2.2 million (EUR 2 million) and it has had a slightly positive EBITA impact. The business has been part of the Glaston segment’s “Other” product area, and the transaction does not affect its guidance for the current year.

Glaston Mexico’s company name will become Bavelloni Mexico. Based in Guadalajara, Mexico, the business specializes in the sales and service of Bavelloni products and in the sales of Glaston heat treatment machines. The company has been operating for more than 25 years, installing over 1,000 machines in Mexico and other Central American countries.

With the aim to focus on one of its core technologies, heat treatment, Glaston divested its pre-processing business in Italy in 2015. In 2016 the pre-processing businesses in the U.S. and Canada were divested and in 2018, the group’s tools business in Italy was sold and the joint venture discontinued in China. The remaining share of the pre-processing and tools businesses included in the “Other” product area will continue as is, as distribution agreements for Bavelloni’s pre-processing products and tools in Brazil and Singapore remain in force.

The purchase of the Mexican subsidiary represents a milestone in Bavelloni’s strategic plan, according to the company, as it will allow the direct management of both commercial and after-sales activities in Mexico and Central America.

Bavelloni Mexico will continue to be managed by Matteo Gherseni, who ran the subsidiary successfully over the last ten years, according to the company.

At the same time as the acquisition, an agency contract was also finalized enabling Bavelloni Mexico to remain the official agent for Glaston heat treatment products in Mexico and Central America. The collaboration between Glaston and Bavelloni will continue unchanged in Italy, where Bavelloni SpA is Glaston’s official agent, as well as in Brazil and Singapore, where Glaston operates as Bavelloni’s official distributor.

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