Waddington set to buy Canadian thermoformer Par-Pak

By Michael Lauzon
Correspondent

Published: May 16, 2013 2:08 pm ET
Updated: May 16, 2013 2:11 pm ET

Related to this story

Topics Packaging, Mergers & Acquisitions, Thermoforming

BRAMPTON, ONTARIO -- Canada-based thermoformed packaging company Par-Pak Ltd. is slated to be bought by Waddington North America Inc., a major plastic tableware producer.

Moody’s Investors Services reported that Waddinton’s parent company, WNA Holdings Inc. of Covington, Ky., plans to take out a line of credit for the purposes of buying Par-Pak and to refinance debt obligations. Moody’s assigned a B1 rating for the first lien credit of $500 million and a Caa1 rating for the second, $150 million lien credit for WNA.

Waddington is based in Covington and was acquired by Olympus Partners of Stamford, Conn., in November. Waddington’s products include disposable plastic plates, cups and cutlery for catering, food service and consumer markets.

A news report indicated Waddington will pay more than $300 million for Par-Pak, a private firm based in Brampton, Ontario, with facilities in Houston, Texas, and Milton Keyes, England. Par-Pak reported North American sales of US$108 million for the year ended June 30, 2011, according to Plastics News’ thermoformers ranking. Total sales were US$166 million for the 522-employee company. It processes polystyrene and PET, largely for bakery customers.

Spokespersons for Waddington and Olympus could not be reached. Par-Pak’s management said it had no comment on the proposed deal.

Moody’s said WNA sales for the year ended Dec. 31, 2012 would be about $566 million pro forma the impact of the Par-Pak acquisition.

“We view the Par-Pak acquisition a credit neutral event overall,” stated Moody’s lead analyst John Zhao in a news release commenting on the Waddington deal. “While financial leverage will increase initially, we expect that the company will generate solid free cash flow to pay down debt and reduce its leverage steadily in the next 12-18 months.”

Last fall Waddington bought Eco-Products Inc., a Boulder, Colo., producer of environmentally sensitive food service products. Waddington also owns Polar Plastic Ltd., a disposable food service products company based in Montreal.


Comments

Waddington set to buy Canadian thermoformer Par-Pak

By Michael Lauzon
Correspondent

Published: May 16, 2013 2:08 pm ET
Updated: May 16, 2013 2:11 pm ET

Post Your Comments


Back to story


More stories

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Tighter resin prices leading to price hike for PE film

August 29, 2014 11:13 am ET

One of North America's largest film makers is pushing through a polyethylene price increase due, in part, to the tight resin market.    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

Pregis, Sealed Air settle film-foam patent dispute out of court

August 28, 2014 1:01 pm ET

A couple of packaging companies are settling their patent fight over film-foam underlayment.    More

Image

Canadian mold maker Thibault adding to new operation in Mexico

August 27, 2014 3:19 pm ET

Canadian mold maker I Thibault Inc has purchased an established Mexican company, Tecnimoldes SA de CV, for a seven-figure-dollar-sum and renamed it Ti...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events