TORONTO — A Canadian extrusion company is the latest plastics firm to get a listing on the Toronto Stock Exchange.
CPI Plastics Group Ltd.'s subordinate voting shares began trading Sept. 21 under the symbol CPI and, after gyrating between C$7.50 (US$4.95) and C$5.35 (US$3.53), closed at C$6.75 (US$4.46) on Oct. 1. The company, formerly called Crila Plastics Industries Ltd., changed its name in May.
The TSE listing came about a month after CPI opened another extrusion plant, its third in Mississauga near its headquarters, and fourth overall. CPI began full operation of the plant in May and is dedicating it to producing a polystyrene foam-based wood substitute called Extrudawood.
CPI spokeswoman Lynn Webster said the new plant includes 15 Davis-Standard extruders, each with 31/2-inch barrels. She did not disclose the main customer for the product, but said the 45,000-square-foot plant was running near capacity.
CPI got a listing on the TSE by a reverse takeover of Waterford Capital Management Inc., a shell company already listed on the exchange. Webster said her firm did not take the usual route of an initial public offering because it did not need the cash right away, but it will have the ability to raise funds in a later issue. Waterford was for sale and CPI decided the timing was right for a listing, she said in a telephone interview.
The firm issued 6.5 million subordinate voting shares worth C$43.9 million (US$29 million) at the Oct. 1 trading price. CPI has 10.6 million shares of all types outstanding for total capitalization of C$71.6 million (US$47.3 million). Peter Clark, CPI's president, chairman and chief executive officer, owns 56 percent of the issued and outstanding subordinate voting shares and 99 percent of issued and outstanding multiple voting shares.
The former Crila Plastics had sales of C$38.5 million (US$27.8 million) and profit of C$2.2 million (US$1.6 million) in 1997. CPI extrudes for appliance, automotive, decorative, construction, furniture and other markets, using styrenics, PVC, thermoplastic elastomers, polyolefins, polycarbonate and acrylic resins.
In addition to extrusion, it has two injection presses to insert mold extrusions and a range of decorating and fabricating services. It also does tool building.
CPI's four plants and a distribution center in Elkhart, Ind., occupy more than 225,000 square feet of space and employ more than 350. Its predecessor company won numerous customer awards and last year was identified as one of Canada's 50 best-managed private firms by the Financial Post. Its main plant got ISO 9001 and QS 9000 certifications this year. The firm was established in 1972; Clark acquired it in 1989.
CPI is making Extrudawood under a North American license from its 70 percent-owned joint venture Extrudawood International Ltd. of Isle of Wight, England. Its partner is Isle of Wight inventor Geoff House.