Norwegian-based metal packaging company Skanem Industries plans to buy SE Labels and hopes to complete a deal before the end of the year.

Chief executive Ole Rugland said an agreement was already in place to buy just over 52% of SEs shares, and the company plans to bid for the remaining shares in the next week.

"We have known SE Labels for a long time, and it is a related business for our packaging business," said Rugland.

The deal would put SE Labels back under Norwegian ownership following its demerger earlier this year from parent Rieber & Son (PrintWeek, 26 January).

SE Labels managing director Ken Forster said: "We are very upbeat about the move and view it as a positive step."

Forster said Skanem had been supportive of the work SE had been doing, and felt the move opened the company to a broader sector.

Skanem worked with SE Labels on projects several years ago, said Rugland.

He said Skanem had no immediate plans for SE Labels, but felt it had done a "great job" on its restructuring programme.

SE Labels boasts five plants in the UK and another five on the continent. Group turnover is around 100m.

The group specialises in self-adhesive labels for pharmaceuticals, foods, beverages and chemicals.

Skanem has a sales outlet in the UK and four plants in Norway and Denmark. It employs 400 people and has a turnover of 51m (NKr 650m).

Story by Andy Scott