With its purchase of McKechnie Investments Inc., PVC Container Corp. acquired McKechnie Plastic Packaging, a Philmont, N.Y., blow molder, on March 30.
``The companies complement each other,'' John Krebs, Novapak vice president of marketing, said in a telephone interview. ``They have similar businesses, similar processes and a similar customer base. McKechnie will add capacity and capability, especially in decoration.''
McKechnie extrusion blow molds custom narrow-neck and wide-mouth bottles in sizes from 2-225 ounces at its 100,000-square-foot plant in Philmont. It uses high and low density polyethylene, polypropylene and PVC, as well as post-consumer HDPE in coextrusion technology. The company primarily serves the toiletry and cosmetic, and specialty and household chemical markets.
``The acquisition of the McKechnie Plastic Packaging business supports our strategy of continuing to expand the company's plastic bottle business,'' Phillip Friedman, president and chief executive officer of PVC Container Corp., said in a news release. ``The Philmont, N.Y., operation is an excellent fit'' with PVC Container's newly formed Novapak Corp. subsidiary.
He added that the plant location will expand Novapak's market share of general-line plastic bottle sales on the East Coast and in the Middle Atlantic states.
McKechnie Plastic Packaging reported blow molding sales of $16 million for the year ended July 31, placing 74th in Plastics News' annual survey of North American blow molders. The firm employs about 175 and operates 18 blow molding machines.
McKechnie also offers value-added services such as computer-aided design for bottles and in-house decorating, including multicolor screen printing and heat-transfer and sleeve labeling.
McKechnie Investments Inc., based in Lexington, Ky., is the U.S. holding company for the blow molder. The parent company, McKechnie plc, is in Aldridge, England. The firm's main businesses are injection molding and metal fabrication.
Based in Eatontown, N.J., Novapak markets injection stretch blow molded and extrusion blow molded bottles made from PET, PVC, HDPE, medium density PE and PP. It employs 380 at its plants in Eatontown; Paris, Ill.; and Walterboro, S.C.
Airopak Corp., a wholly owned subsidiary, does fluorination treatment of some HDPE bottles to improve barrier properties. Another subsidiary, Novatec Plastics Corp., supplies PVC compounds and specialty plastic alloys.
PVC Container stock is traded on Nasdaq under the symbol PVCC. The Eatontown-based firm estimated blow molding sales at $45 million for the year ended June 30, placing 36th in Plastics News' ranking.