PVC Container Corp. might get a new majority owner that could help the Eatontown, N.J., blow molder and compounder expand. Kirtland Capital Partners sign-ed a nonbinding letter of intent to acquire a 63 percent stake in PVC Container from Rimer Anstalt, a private investment firm based in Liechtenstein. PVC Container announced the agreement Nov. 18.
Ray Lancaster, managing partner for Kirtland Capital, said his company has a pool of investment capital it could use to help PVC Container grow. Kirtland is a privately funded investment group in Willoughby Hills, Ohio, with more than $100 million in equity capital. He would not elaborate on future plans because Kirtland is performing due diligence. Kirtland expects to close the deal by year-end.
Lancaster said PVC Container is ``a well-run company with good opportunity to grow.'' He also praised the company's management team during a telephone interview. Kirtland's investments include foundry sand production and ceramic fibers for insulation. It currently has no plastics investments, but several years ago it sold a stake in an undisclosed PVC pipe producer because Kirtland was presented with ``a good offer.'' Kirtland and a predecessor firm have been making acquisitions since 1978.
Rimer has held a majority stake in PVC Container since 1978, said Phillip Friedman, PVC Container's chief executive officer. Friedman said Rimer has been a ``passive'' investor in his company. PVC Container has been a public company since 1968 and Rimer said he does not expect that status to change. He does not anticipate any big change at PVC Container if the deal goes through.
PVC Container opened its fourth container plant in October with a new facility in Walterboro, S.C. Earlier this year it entered injection stretch blow molding of PET with new equipment at Eatontown. It also molds polyethylene, polypropylene and PVC. Its blow molding sales of $43 million for the year ended June 30 placed it 35th in Plastics News' recent ranking of North American blow molders. The company's total sales last year were $57 million.