ViskoTeepak buys remaining stake in meat packaging supplier Vista

By Jim Johnson
Senior Staff Reporter

Published: July 7, 2014 3:33 pm ET
Updated: July 9, 2014 5:00 pm ET

Image By: Vista International Packaging LLC ViskoTeepak and Vista Packaging make film used in the meat and poultry industry.

Related to this story

Topics Mergers & Acquisitions, Europe, United States, Food packaging, Film & Sheet

ViskoTeepak’s acquisition of Vista International Packaging LLC, in one sense, was more than four decades in the making.

Started by Hormel Foods Corp. in 1972, Vista came to life after the parent company had difficulty finding quality casings for its sausage products.

Vista, once created, turned to ViskoTeepak of Mariehamn, Finland, to become a supplier to the Kenosha, Wis., based food-packaging company.

Year after year, decade after decade, the two companies maintained their relationship. And by 2012, both sides saw value in ViskoTeepak, a maker of plastic and paper food casings, taking a 10-percent stake in the U.S. firm.

Vista had been the U.S. converting, sales and service representative for ViskoTeepak’s tubular plastic casings, cellulose casings and fibrous paper casings. These non-edible casings are sometimes used to process and then transport products. Other times, they are used to form products such as hot dogs before they are stripped away.

The initial equity stake in Vista by ViskoTeepak allowed the companies to work more closely together, including sharing information, and ultimately resulted in the complete acquisition of the firm.

For ViskoTeepak, the acquisition of Vista creates a Western Hemisphere beachhead through which it can better service its global clients in this part of the world.

For Vista, the deal gives the U.S. operations full access to research, development, support and knowledge from ViskoTeepak.

Becoming vertically integrated in the U.S. by combining the two companies provides business advantages.

“Now that we are one company, we keep our converting operations here in the U.S. There’s also synergies for ViskoTeepak in that we can now convert products in the U.S. and ship outside of the U.S. and service ViskoTeepak’s other customers in regions close to the U.S.,” said Ron Ramsey, vice president of sales and marketing for Vista.

“They saw it as a way to be more competitive in the U.S. marketplace by being vertically integrated,” he said.

Vista had been owned by private equity firm Keystone Capital Inc. since 2004, after Hormel decided to sell the business to allow it to grow as an independent operation. Some competing food companies did not want to do business Vista because it was owned by Hormel.

The change in owners solved that issue, but it also became obvious that the company would eventually be sold once again because of its ownership by private equity.

While Keystone Capital is more of a “buy-and-hold” firm, Ramsey said, there still was a desire to eventually sell the company.

ViskoTeepak will still continue to supply its existing partner companies in Canada, Mexico, Central America and South America. The company will now just be able to do it from Kenosha rather than Finland, Ramsey said. “It’s just more efficient for the operations,” he said.

ViskoTeepak is owned by Eriksson Capital Group and now employees more than 1,000 people with the Vista acquisition, the company said. Eriksson Capital also owns Optinova Ab, a maker of fluoropolymer medical tubing.

“Amongst other things, the acquisition allows us to optimize the total logistical chain and to evaluate, identify and implement what is commonly called ‘best practices’ within the field of converting, all aiming to improve our service level and product offering,” said ViskoTeepak CEO Ben Eriksson said in a statement.

With the latest deal, Vista will become ViskoTeepak as plans are to transition the brand by the “first of next year,” ViskoTeepak said.


Comments

ViskoTeepak buys remaining stake in meat packaging supplier Vista

By Jim Johnson
Senior Staff Reporter

Published: July 7, 2014 3:33 pm ET
Updated: July 9, 2014 5:00 pm ET

Post Your Comments


Back to story


More stories

Image

Latvian plastics recycler Nordic Plast boosts capacity

September 16, 2014 10:15 am ET

Latvian plastics waste recycler Nordic Plast Ltd. has invested more than 2.5 million euros ($3.2 million) to expand capacity and modernize production ...    More

Image

US plastics machinery market still gaining strength in second quarter

September 15, 2014 5:01 pm ET

U.S. plastics machinery shipments in the second quarter continued to outperform activity in 2013, according to data from Society of the Plastics...    More

Image

Toy supplier sues maker in reshoring fight

September 15, 2014 3:18 pm ET

An Arkansas toy supplier is suing a Taiwan-based manufacturer for breach of contract and other civil allegations in a legal dispute that not only...    More

Image

Primex finds success among diverse product offerings

September 15, 2014 3:09 pm ET

What was once a run-down stretch of road in Richmond, Ind., has given way to building after building of extrusion machinery at Primex Plastics Corp....    More

Image

Primex names new tech center after John Farber, a steady supporter

September 15, 2014 3:00 pm ET

RICHMOND, IND. — John J. Farber was there when Primex Plastics Corp. was founded in 1965. And he has been a steady source of support...    More

Market Reports

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

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

Upcoming Plastics News Events

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

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

More Events