Blow Molded adds 5th large machine
FOLEY, MINN. — Blow Molded Specialties Inc. recently began operating its fifth large blow molding machine in Foley, about 75 minutes northwest of Minneapolis.
The firm bought two 35-poundhead Sterling blow molding machines from Ecowater Systems Inc. of St. Paul, Minn., which recently boosted capacity by installing two large Sterling blow molders. Blow Molded also has three 20-pound machines, said Dan Turnquist, sales and marketing manager.
Blow Molded custom molds fuel tanks, recreational containers and industrial tanks, Turnquist said in a telephone interview. It mainly processes high density polyethylene but recently began working with thermoplastic elastomers. The 6-year-old company will do about $2.5 million in sales this year and Turnquist predicts sales will rise to $3.6 million next year.
Financial group backs Pretium expansion
GLASTONBURY, CONN. — Fleet Capital Corp. has underwritten and funded a revolving credit, term loan and acquisition package totaling $93.5 million for Pretium Packaging LLC of St. Louis.
The financing will support acquisitions and provide funds for ongoing operations. Pretium's most recent acquisitions include Muscatine, Iowa-based Central Plastics Group, Robb Container Corp. of Naperville, Ill., and the container manufacturing assets of Waconia, Minn.-based Emplast Inc. These additions nearly double Pretium's sales, as well as expand its product line, customer base and geographic presence.
``Our relationship with Pretium began three years ago, when we provided a $14.5 million acquisition facility,'' Philip Strauss Jr., executive vice president and group manager of Fleet Capital, said in a news release. ``Since that time [Pretium President] Keith Harbison and his team have been on an aggressive acquisition track. Fleet Capital has continued to provide the financing to support their build-up strategy, and we look forward to helping them meet their future growth objectives.''
Glastonbury-based Fleet Capital is part of Fleet Financial Group, a $100.7 billion publicly held financial services company. The company provides asset-based and cash-flow lending and other commercial finance services to domestic middle-market companies and their foreign subsidiaries.
Pretium runs 10 manufacturing plants nationwide in the packaging industry. Products include various sizes of plastic bottles and closures used in end markets such as pharmaceutical, food, agriculture and household chemicals and personal care. The company expects to achieve sales of nearly $100 million this year.
Crown Cork to slash 7% of its work force
PHILADELPHIA — Crown Cork & Seal Co. Inc. plans to cut 7 percent of its work force as part of a plan to boost profitability and its stock price.
About 2,700 employees worldwide will be cut from the company's payroll, resulting in a $121 million charge to earnings. Crown Cork & Seal officials have not decided in which business segments cuts will be made.
The Philadelphia-based company reported that its profit is being hurt by low crop yields in the United States, disruptions in normal trading patterns in the United Kingdom and weaker currencies in Mexico, Canada and Brazil.
Crown Cork & Seal will buy back as many as 10 million shares of its common and preferred stock, or 7.5 percent of its outstanding shares.
Reduced costs and capital spending will help generate about $1 billion in free cash flow in the next two years. The firm operates 247 plants in 49 countries. It was the top-ranked North American blow molder in Plastics News' listing last year with relevant estimated sales of $730 million.