Linpac Flexible Packaging of Morristown, Tenn., has a new owner - but it is not the one it had been expecting. Newcastle Packaging, a Santa Fe Springs, Calif., bag maker and film converter, has expanded its manufacturing and warehousing space by buying the unit from Atlanta-based Linpac Inc. The Tennessee plant makes thick-thin bags, zipper deli bags, and merchandise and T-shirt bags. Newcastle's Santa Fe Springs plant makes similar products as well as industrial bags and converted film. Together, the plants encompass more than 200,000 square feet.
No purchase price was disclosed, but Newcastle said the former Linpac facility now will be known as Newcastle Packaging, and is ISO 9002-certified.
Late last year, PCL Plastics Corp. of Oakville, Ontario, signed a letter of intent to acquire Linpac Flexible Packaging, but the two firms discontinued negotiations near the end of 1995, said PCL President and Chief Executive Officer R.L. Bud Smith. He did not explain in a Feb. 14 telephone interview why negotiations broke down with Linpac after PCL, also a maker of flexible packaging, began due diligence on the Morristown firm. He reiterated PCL's commitment to grow and continue looking for acquisitions.
When PCL was doing due diligence on Linpac last November, Larry Crabtree, general manager of Linpac's Morristown operations, said the Morristown plastics packaging business did not fit Linpac's other U.S. businesses in expanded polystyrene and paper.
Newcastle's principals, David Nash and Lance Rosenzweig, said in a joint statement issued Feb. 12 that the Morristown plant gives their company nationwide distribution capabilities. They also noted that Newcastle continues to investigate other acquisition opportunities.
Linpac is a major manufacturer of packaging and plastic bags.