TORONTO—Polyethylene bubble and foam products manufacturer Polyair Inter Pack Inc. acquired a PE foam business in Bardstown, Ky., the Toronto firm announced Aug. 31.
Mabex Universal Corp. will launch Polyair into thin PE foam markets and add large electronics firms to its customer base, John Foglietta, Polyair chief financial officer, said by telephone. It also will expand its sales in furniture and automotive markets.
The firm predicts Mabex's Bardstown operation will have sales of about C$8 million (US$5.2 million). Polyair's sales for the year ended Jan. 31 were C$86 million (US$62.1 million).
Polyair indicated in June it was negotiating an acquisition but did not disclose its target at that time. Polyair paid about C$12.5 million (US$8.1 million), including assumed debt, for Mabex's operations in Bardstown and Tijuana, Mexico, formerly owned by Mabuchi Corp., a private firm based in Yokohama, Japan.
Polyair has an agreement in principle with an undisclosed firm to sell the Tijuana plant, which mainly does converting and has lower sales volume than Bardstown, Foglietta said.
Polyair indicated it wants to continue expanding in the United States but it provided no details. It now has six plants in the United States, one in Canada, and one in Mexico. The producer of protective packaging, swimming pool accessories and insulation sells through a network of about 1,300 distributors across North America.