Acquisition expands Rieke Packaging's stake in Asia

By Michael Lauzon
Correspondent

Published: July 28, 2014 4:39 pm ET
Updated: July 28, 2014 4:55 pm ET

Image By: Rieke Packaging Systems Rieke Packaging makes specialty closures, and is adding to its geographic footprint with acquisitions in Asia.

Related to this story

Topics Packaging, Mergers & Acquisitions, United States, Asia

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

Rieke parent company TriMas Corp. acquired Lion Holdings Pvt. Ltd. of Greater Noida, India, a producer of plastic dispensing systems for non-pressurized consumer packaging. Lion Holdings manufactures in Greater Noida and Baddi, India, and Ho Chi Minh City, Vietnam.

“Going to India is something we’ve been working on for some time,” said TriMas spokeswoman Christine Parker in a phone interview. Rieke has done some export business to India but owning production there “is a quicker way to be there.”

TriMas paid $27 million for Lion Holdings, a $10 million company for the year ended June 30, in a deal that closed July 25. Parker said Lion Holdings has similar product lines to Rieke’s dispensing system category. The two businesses have some globally oriented customers in common but Rieke also will gain new clients as a result of the deal.

Rieke is much larger than Lion Holdings — $313 million in sales last year — but is also far more diverse. In addition to specialty dispensing systems such as pumps, foamers and sprayers, Rieke’s product lines include plastic and steel closures, caps, drum and pail enclosures, rings and levers.

“This acquisition clearly broadens our Asian market coverage and extends our geographic reach, while also providing significant customer and product synergies,” noted Lynn Brooks, president of TriMas’ packaging segment in a news release. The newly bought capacity will support TriMas’ Asian growth strategy and contribute to a global packaging supply chain, he added.

Rieke opened its second plant in China early this year. The Haing operation complements Rieke’s Hangzhou, China, plant opened several years ago. The operations in China produce most of Rieke’s product lines, according to Parker.

Rieke, headquartered in Auburn, Ind., has another plant in the state at Hamilton, and operations in Arkansas, California, Australia, France, Germany, Mexico and the United Kingdom.

Parker said it is too early to speculate about plans for the acquired plants in India and Vietnam but “we will try to grow our presence in Asia and we will keep the management team.”

Lion Holdings was part of India’s Bahri group. Lion Holdings’ Specialty Valves business unit claims to have introduced spraying and dispensing systems into India in 1995. Its Indian operations run L&T and Ferromatik injection molding presses with clamping forces ranging from 50 to 450 tons as well as tool rooms.

TriMas went on an ambitious expansion program a few years ago and added new U.S. operations to Rieke. It bought Innovative Molding Inc. in 2011, adding facilities in Rohnert Park, Calif., and Atkins, Ark., and expanding Rieke’s market share in food and nutrition closures. In 2012 TriMas bought Arminak and Associates LLC of Azuka, Calif., boosting Rieke’s stake in consumer dispensing products.

Business segments for Trimas of Bloomfield Hills, Mich., are packaging, energy, aerospace and defense, engineered components and equipment for towing, trailers and cargo management. The Nasdaq-listed firm employs about 6,000 at more than 60 facilities in 17 countries.


Comments

Acquisition expands Rieke Packaging's stake in Asia

By Michael Lauzon
Correspondent

Published: July 28, 2014 4:39 pm ET
Updated: July 28, 2014 4:55 pm ET

Post Your Comments


Back to story


More stories

Image

Investment firm buys Ontario cap molder

October 23, 2014 2:01 pm ET

A company whose varied interests include food and refrigerated transportation businesses is now moving into plastic caps.    More

Image

FTC warns bag makers to take care before making biodegradeability claims

October 23, 2014 12:30 pm ET

Makers of oxodegradable or oxo-biodegradable plastic bags should consider themselves on notice, according to the U.S. Federal Trade Commission.    More

Image

Toyoda Gosei's growth strategy places a big focus on North America

October 23, 2014 1:21 pm ET

Sometimes, knowing your weaknesses is just as important as knowing your strengths. And if 2014 is any indication, automotive supplier Toyoda Gosei Co....    More

Image

Bemis reports record quarterly profit

October 23, 2014 1:06 pm ET

Bemis Company Inc. saw record per-share earnings from continuing operations during the third quarter, but charges associated with the divestiture of...    More

Image

Packaging specialist Amcor hits sustainability goals ahead of schedule

October 23, 2014 11:15 am ET

Global packaging company Amcor Ltd. has achieved its waste reduction goals two years ahead of schedule, according to the company's new sustainability ...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Woodís economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events