Poly-Pak Industries Inc. has entered new markets by buying the manufacturing assets of Bag Packaging Corp. and Luanne Extrusion Inc. of Roselle, N.J.
Financial terms of the Feb. 12 acquisition, which included bag-making and extrusion equipment, were not disclosed.
``This is a good fit; it enlarges our existing capacity,'' said Poly-Pak President Peter Levy.
``This purchase puts Poly-Pak into a new and profitable commodity market and affords us the opportunity to sell an additional product line to our existing base of customers,'' he added in a news release.
The new end markets include polyethylene apparel and garment bags and retail bags.
Bag Packaging and Luanne's combined annual sales were around $7 million, according to Poly-Pak, which expects to double that figure by 2000.
Melville, N.Y.-based Poly-Pak bought eight extrusion lines and six bag-making machines and moved them to a 25,000-square-foot leased space in Elizabeth, N.J., where they will be on line in April. The area was leased in January and is connected to Poly-Pak's 70,000-square-foot plant.
The firm now has 18 extrusion lines and about 40 bag-making machines. Roughly 30 employees will be added to its staff of 370.
Bag Packaging and Luanne Extrusion shared common owners, Levy said. Although the firms are no longer in the manufacturing business, he said they will sell Poly-Pak's products.
In an unrelated move, Poly-Pak is adding 50,000 square feet to its 150,000-square-foot Melville plant in August. It has run out of room and needs to expand, Levy said.
Poly-Pak's other divisions include plastic bags for retailers; plastic security pouches and mailers; plastic bags for the bread and produce industries; plastic packaging for other industries, such as clothing, shower curtains, paper towels and napkins and housewares; and plastic dropcloths and tarpaulins.
Poly-Pak, a privately held company, was founded in 1958.