Vanguard Plastics Inc., one of the largest U.S. T-shirt bag manufacturers, increased its West Coast capacity with the purchase of EG Plastics of Compton, Calif.
``This acquisition will increase our [companywide] production capacity by more than 10 percent,'' and allow Vanguard to continue expanding its business, said Darwin Groesbeck, vice president and general manager of Vanguard's West Coast operations.
The Oct. 31 acquisition boosts Vanguard's capacity by adding six film extrusion, bag converting and printing lines. EG Plastics, a 10-year-old firm, employs 45.
``We needed extra capacity,'' Groesbeck added. ``Their equipment is all fairly new and the same type that we run in the [Rancho Cucamonga] California plant. The plants are about an hour and a half apart. EG makes a real nice fit.''
The company did not disclose the purchase price.
Like Vanguard, EG serves the grocery, mass merchandising, department, specialty and convenience store industries. EG's Compton site becomes Vanguard's seventh U.S. plant. The others are in St. Louis; Jacksonville, Fla.; Dallas; Richmond, Va.; and Rancho Cucamonga.
In Plastics News' 1997 ranking of North American film and sheet makers, Vanguard was 25th, with sales of $200 million. The St. Louis-based firm operates 73 lines and employs more than 700.