Thermoformer UFP Technologies Inc. has acquired the assets of FCE Industries Inc., a designer and manufacturer of engineered foam plastics for packaging and specialty applications.
Terms of the deal were not released. The sale was finalized Feb. 3.
``FCE Industries gives us a key strategic location in the Midwest and expands our geographic reach,'' R. Jeffrey Bailly, UFP president and chief executive officer, said in a press release.
``We expect it to add between $4 million and $5 million in revenues in 1997, and to contribute immediately to earnings per share.''
FCE, formerly known as Foam Cutting Engineers, is based in Addison, Ill., and has 45 employees.
It was founded in 1969 and supplies foam plastics for industrial and consumer applications. Last year, the firm had sales of about $4 million.
``[Its markets] are very similar to ours with a mixture of packaging and specialty applications,'' said Peter Troast, UFP director of marketing and business development.
UFP said it plans to retain the management, plant and employees at FCE's plant. UFP has 10 plants, not including its Georgetown, Mass., facility. They are located along the East Coast and in California and Iowa. The plant in Iowa makes molded fiber products.
FCE ``is a cultural fit as well as a geographical fit,'' Troast added.
``There was no foam location in the Midwest and FCE fit our profile,'' he said.
UFP is a publicly held designer and manufacturer of high-performance cushion packaging and specialty foam and plastic products for industrial and consumer markets.
The company also owns Moulded Fibre Technology, a division that makes interior packaging products from 100 percent recycled paper.
UFP employs about 420 people with the acquisition.
It reported sales of $34.1 million for 1995 and sales of $28.9 million for the first three quarters of 1996.