AlliedSignal Specialty Films has purchased another maker of electronics packaging film, Connecticut-based Web Technologies Inc. — and an Allied executive said the company plans to keep buying.
``We're focused on growth. We're going to be making acquisitions,'' said Kenneth Berger, director of business development for AlliedSignal Specialty Films, a unit of AlliedSignal Inc. Both firms are based in Morristown, N.J.
The Web Technologies purchase follows the 1997 acquisition of another electronics packaging maker, Gomar Manufacturing Inc.
AlliedSignal, which makes some resins that go into electronics packaging such as fluoropolymers and nylon, has targeted the electronics packaging market as a high-growth area. Last year the company sold its less-profitable PVC shrink film business.
The announcement came May 14. Terms were not disclosed.
The firm now has four film plants—its original film plant in Pottsville, Pa.; the Web Technologies site in Oakville, Conn.; and two Gomar plants in New Jersey, in Linden and Cranbury.
Berger said production will continue at all the locations.
As electronics keep growing, demand is strong for innovative, see-through packaging for shipping electronic components such as microprocessors and disc drives, he said. The packaging must protect the parts from moisture. The film also must be slightly conductive, so that static electricity does not built up.
``As these electronic components become more and more sophisticated, there is even a greater need for packaging,'' Berger said.
Plastic film competes against foil. But clear film is winning out as components are shipped around the world, Berger said.
``There's an advantage to have a transparent package, so customs officials can inspect the package without tearing open the package,'' he said.
AlliedSignal Specialty Films also makes film for pharmaceutical, medical, food and specialty packaging markets.
Berger said Web Technologies annual sales were about $25 million. AlliedSignal Specialty Films should have sales this year of more than $200 million, he said.
In Plastics News' film and sheet ranking published last fall, the firm was tied for 43rd place, based on 1996 sales of $115 million.