Pretium Packaging's rapid expansion continues with its third acquisition in as many weeks.
The St. Louis firm purchased container manufacturing assets from Emplast Inc. of Waconia, Minn., on June 26. This purchase will bolster Pretium's annual sales by $4.5 million, giving the company total sales of $95 million to $110 million.
``We have added significantly to our presence and capabilities in the upper Midwest with this acquisition,'' said Keith Harbison, Pretium president and chief executive officer. ``We are excited to add many major marketers of personal-care and other consumer product companies to our customer base and intend to earn additional business.''
The purchase includes six extrusion blow molding machines and automated decorating equipment. Pretium will move the machines from Emplast's Chanhassen, Minn., facility to Pretium plants in Peru, Ill.; LeCenter, Minn.; and Seymour, Ind.
``This is where the equipment will best serve our customers,'' Harbison said in a telephone interview. ``We have more demand in medium-size shuttle extrusion blow molding than we have equipment.
``Excellent business has been acquired along with the equipment. Emplast amassed a very nice customer base,'' he added.
Between 12 and 15 people will be added at the facilities. Terms of the deal were not released.
``Emplast's decision to divest itself of the extrusion blow molding operations was caused by the larger consolidations taking place in the market,'' Emplast CEO Mark Bongard said in a prepared statement.
``We needed to make a decision, either make large capital investments to expand market position or pull out from the market. We chose to leave the market and focus on our core competencies in injection molding.''
The six blow molding machines going to Pretium mold high density polyethylene bottles for the personal-care market.
``This is one of our target markets, along with the pharmaceutical, household chemical, agricultural chemical and food industries,'' Harbison added.
Emplast reported blow molding sales of $12 million for the fiscal year ended Aug. 8. After selling equipment to Pretium, the company will operate five industrial blow molding machines. The bulk of the employees affected by the purchase will be transferred to other Emplast locations or to Pretium, Bongard said.
Pretium runs 10 U.S. plants with 94 blow molding machines. Most recently, it acquired Robb Container Corp. of Naperville, Ill., and followed up with the June 22 acquisition of Central Can Co.'s Muscatine, Iowa, facility.
Pretium placed 33rd in Plastics News' ranking of North American blow molders, with sales of $52.5 million last year. With its acquisitions, Pretium could make the top 20 this year. The firm also does some injection molding.