Pretium Packaging has added another blow molding facility, purchasing an Iowa plant from Chicago-based Central Can Co. to bolster its presence in bottles for agricultural chemicals.
The St. Louis company's June 22 purchase of Central Plastics Group brings its only plant, a 180,000-square-foot facility in Muscatine, Iowa, under Pretium's umbrella.
The purchase will boost Pretium's annual sales to between $90 million to $105 million, said Keith Harbison, Pretium's president and chief executive officer. Terms were not disclosed.
The Muscatine plant has eight extrusion blow molding machines, and includes about 100,000 square feet of warehouse because demand for the products is seasonal, he said. The facility employs about 50.
The deal also gives Pretium a line of specialty fluorinated containers for agricultural chemicals. Fluorination helps keep oxygen out of the bottles and, in turn, keeps them from deforming, he said.
Central Can sold its plastics unit to raise money to expand its metal operations, which make paint cans and pails, said Terry Kline, vice president of Central Can. Central Plastics had $16 million in sales, but metal is a much larger part of Central's operations, he said.
Central established the plant in 1983 to keep business with Monsanto Chemical Co. when the agricultural market switched to plastic, he said.
Muscatine works only in high density polyethylene. Both companies said Muscatine was a profitable plant.
The acquisition gives Pretium 10 blow molding plants, in short order doubling the number of its facilities since it acquired Robb Container Corp. and its four plants June 16. The firm is in talks with other blow molders, Harbison said.
The senior management and sales staff of Central Plastics are remaining with Central Can, but Muscatine plant managers and employees are now part of Pretium.
Pretium placed 33rd in Plastics News' ranking of North American blow molders, with related sales of $52.5 million for 1997.
The $40 million in blow molding sales that Robb and the Muscatine plant had last year would have edged Pretium into the top 20. Pretium also has some injection molding sales.