UFP Technologies Inc., a maker of cushion packaging, raised about $6.5 million in an initial public offering Dec. 17. The company, formerly known as United Foam Plastics Corp., sold the stock in part to finance its October acquisition of Moulded Fibre Technology Inc.
UFP, based in Georgetown, Mass., makes polyethylene and polyurethane foam packaging, as well as products that use laminations of cross-linked PE and fabrics, such as shock-absorbing shoe inserts.
Moulded Fibre Technology, based in Westbrook, Maine, makes cushion packaging products from recycled paper. UFP plans to open a second MFT plant in California in 1994.
According to UFP's prospectus, the company, not including MFT, recorded sales of $29.2 million in 1992, and $22.6 million for the nine months ended Sept. 30. The company reported a profit of $52,000 in 1992, and a loss of $371,000 for the first nine months of 1993.
Much of the loss was attributed to the operation of a foam recovery, reuse and recycling business, Re-Source America, in which the company held a 45 percent interest.
UFP spun off Re-Source America on Sept. 30.
MFT reported sales of $458,748, and a loss of $1.3 million, in 1992. For the first nine months of 1993 it recorded sales of $764,276 and a loss of $1.2 million.
UFP has 318 employees, including 51 at MFT. The company trades on the NASDAQ over-the-counter system.