Atlantis Plastics Inc. has signed a definitive agreement to sell Plastic Containers Inc., its blow molding subsidiary located in Demopolis, Ala., to Reid Plastics Inc. of Arcadia, Calif. The sale, due to close Nov. 14, will take Atlantis out of the blow molding business. Terms were not disclosed.
Reid Plastics blow molds bottles and water cooler jugs. The company had estimated sales of $100 million last year and ranks 17th in Plastics News' 1996 survey of North American blow molders.
``This is part of our previously announced strategy to focus our resources on core plastics operations, specifically the manufacture of polyethylene stretch and custom films and molded plastic products,'' Atlantis President and Chief Executive Officer Anthony Bova said in a news release.
Atlantis expects to reduce its overall cost structure by more than $5 million by the end of this year. The firm announced the restructuring plans last year.
In September 1995, Atlantis sold its 50 percent interest in CKS/Rigal Joint Venture Inc., an Atlanta blow molding company, to CKS Packaging.
Plastic Containers had sales of less than $25 million for the year ended Dec. 31, 1994. It blow molds high density PE dairy, water, juice and industrial containers. The plant has 17 machines and 95 employees.
Atlantis manufactures PE stretch and custom films and molded plastic products. The stretch films are used principally to stretch wrap pallets. The custom films, which include high-grade laminating films, embossed films and specialty film products, are marketed to industrial and agricultural markets. The company ranked 25th in Plastics News' film and sheet ranking this year with sales of $192.8 million.
It distributes its injection molded plastic products primarily to original equipment manufacturers in the appliance, automotive, agricultural and recreational vehicle industries. As a corporation, Miami-based Atlantis reported sales of $281 million last year.