TORONTO — Yorkbridge Capital Management Corp. plans to expand its blow molding business by acquiring a controlling interest in Mission Packaging Ltd. of Calgary, Alberta.
Michael Walker, Yorkbridge director of acquisitions, said his firm will buy Mission through Yorkbridge's majority-owned Agra Plastics (1996) Inc. subsidiary, which it acquired last year. Mission and Agra are complementary businesses that can help each other expand, Walker said in a telephone interview from Yorkbridge's Toronto office.
Mission mainly makes PET bottles and preforms for beverage, water, food, liquor and consumer products. Agra blow molds PVC, polyethylene and PET bottles for amenities, food and beverage and household and consumer products. It buys PET preforms.
Walker said Mission and Agra will be able to share their expertise and the combination will have a wider geographic market. Agra in Mississauga, Ontario, mainly supplies southern Ontario markets while Mission sells in western Canada and the United States.
Walker did not reveal terms of Agra's letter of intent to buy Mission. He hopes the deal will close in late April.
Mission's current shareholders would retain an interest in their company.
Officials did not reveal sales figures, but Walker said Mission's sales have been about 60 percent of Agra's sales.
Agra had sales of about US$10.2 million for the year ended July 31, 1995, according to Plastics News' 1996 survey of North American blow molders.
Mission and Yorkbridge will invest to expand the Calgary facility. Agra also is expanding in Mississauga. Walker said the deal ``will be the first in a series to grow Agra.''
Yorkbridge, a private investment firm with interests in small and medium-size companies, arranges financing for management buyouts.
The company claims to be exclusive financial advisor to a C$65 million (US$46.8 million) investment fund.