Sigma Plastics buys Southern Film Extruders

By Frank Esposito
Senior Staff Reporter

Published: October 3, 2013 5:34 pm ET
Updated: October 3, 2013 5:36 pm ET

Related to this story

Topics Mergers & Acquisitions, Packaging, Extrusion, Film & Sheet

North American film giant Sigma Plastics Group is growing again, this time by acquiring Southern Film Extruders Inc., a polyethylene film manufacturer that filed for bankruptcy earlier this year.

No purchase price was disclosed. In an Oct. 3 news release, Sigma Chairman and CEO Alfred Teo said that High Point, N.C.-based Southern “is a well-established, reputable company that complements our industrial film expansion strategy.”

Teo added that Lyndhurst, N.J.-based Sigma “is committed to providing the capital and support necessary to allow Southern Film to reach its full growth potential.”

Southern operates 65 million pounds of capacity at two plants in High Point making monolayer, three-layer, barrier, converter and lamination films. The firm employs 175 and posted sales of $70 million in 2012.

John Barnes, Southern’s general manager, will remain with the firm after the sale.

On Aug. 4, Southern filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in North Carolina. The firm listed assets of $10 million to $50 million and debts of $1 to $10 million in the filing. In late July, Southern’s creditors had filed an involuntary Chapter 7 bankruptcy filing against the firm. Southern’s largest creditor was resin supplier Westlake Polymers LLC, which was owed almost $5 million.

The acquisition is Sigma’s fifth in the last five years, but it’s first since 2010, when the firm bought McNeely Plastic Products Inc., a maker of blown film, laminations and bags in Clinton, Miss. In 2009, Sigma bought blown film maker Santa Fe Extruders Inc., in Santa Fe Springs, Calif.; FlexSol Packaging Corp. of Pompano Beach, Fla.; and ISO Poly Films Inc. of Gray Court, S.C.

Sigma ranked as North America’s second-largest film and sheet maker in a recent Plastics News survey with sales of $2.45 billion in 2012.


Comments

Sigma Plastics buys Southern Film Extruders

By Frank Esposito
Senior Staff Reporter

Published: October 3, 2013 5:34 pm ET
Updated: October 3, 2013 5:36 pm ET

Post Your Comments


Back to story


More stories

Image

Acquisition expands Rieke Packaging's stake in Asia

July 28, 2014 4:39 pm ET

Diversified rigid packaging components producer Rieke Packaging Systems now has a bigger footprint in Asia.    More

Image

Who are the fastest growing pipe, profile and tubing extruders?

July 28, 2014 3:09 pm ET

Question: What's the word on this week's Plastics News annual ranking of the top Pipe, Profile and Tubing extruders in North America? Answer: Up....    More

Image

Two medical device makers add specialty products through acquisitions

July 28, 2014 3:02 pm ET

The medical merger mania continues this summer as two more medical device manufacturers are swallowed up by bigger competitors.    More

Image

Deal combines US packaging thermoformers

July 28, 2014 12:42 pm ET

Thermoformed medical packager Nelipak Corp. is expanding its North American holdings and access to the U.S. health care market with the purchase of...    More

Image

Sealed Air's move to Charlotte will put it all under 'One Roof'

July 25, 2014 2:03 pm ET

Sealed Air Corp. shook the ground last week by announcing plans to relocate its headquarters from Elmwood Park, N.J., to Charlotte, N.C., in a move th...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

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