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Bemis and UPM-Kymmene are terminating the agreement to sell Bemis’ Pressure Sensitive Materials Business to UPM-Kymmene. The companies entered into a purchase and sale agreement a year ago, but in April the US Department of Justice filed a complaint seeking an injunction to block the transaction. In an opinion released in the U.S. District Court for the Northern District of Illinois, the Department of Justice was granted an injunction to block the transaction. The companies do not plan to appeal the court decision. Jeff Curler, president and chief executive officer of Bemis says. "We are obviously disappointed that the transaction could not be completed. With this issue now behind us, we will continue to manage our pressure sensitive materials business to improve profitability, strengthen our manufacturing efficiencies, and re-establish a commitment to our customers."Bemis Company is a leading supplier of flexible packaging and pressure sensitive materials used by food, consumer products, manufacturing, and other companies worldwide. Founded in 1858, the Company reported 2002 sales of US$2.4 billion. The proposed purchase by UPM of the Bemis pressure sensitive division was seen as a response to the Avery Dennison - JAC merger announced 18 months ago.
