Bemis Co. Inc., one of the largest North American manufacturers of flexible packaging, film and sheet, has agreed to acquire Banner Packaging Inc. of Oshkosh, Wis. Neither company disclosed terms of the deal, which is subject to governmental approval and development of a definitive purchase agreement.
Lisa Locken, a spokeswoman for publicly held Bemis, said no details will be available until an agreement is reached.
Privately held Banner had 1994 sales of about $60 million, according to Locken. Bemis had sales of about $1.4 billion for the same period.
Bemis already owns 22 percent of Banner, which operates one plant in Oshkosh making polyethylene films for food and personal-care packaging and laminated films. Banner was 75th in Plastics News' 1994 ranking of North American film and sheet manufacturers.
Minneapolis-based Bemis is a diversified manufacturer of plastic and paper flexible packaging and pressure-sensitive materials. Coated and laminated film, including metalized products and stretch film, accounted for about 31 percent of its 1994 sales, according to Locken.
PE roll stock and other film accounted for 16 percent, packaging machinery 8 percent, pressure-sensitive materials about 9 percent and paper packaging products, 15 percent.
``While this is not a huge acquisition, it is a good fit,'' said Stewart Scharf, a flexible packaging analyst for S.G. Warburg & Co. Inc. in New York. ``The two companies have similar product lines. Of course, Bemis is much larger, but the acquisition should be of help if it is completed.''
Bemis has a history of expanding through acquisitions, particularly of flexible packaging operations. The company also has sold several unrelated businesses in recent years, including its blow molding operations, injection molded promotional cups and nylon resin production.
Scharf said that while Banner's estimated sales represent less than 5 percent of Bemis' total flexible packaging sales annually, it is a logical enhancement.
``The immediate impact of the sale should be modest, but should increase as synergies are found,'' Scharf said. ``Banner will help Bemis, especially in the area of coextruded film products.''