Bag and envelope maker Uniflex Inc. has been purchased by Carl Marks & Co., a private investment bank, for $33 million.
``We feel that the market we're in is ready for consolidation; some has already taken place,'' Uniflex President Robert Semel said in a telephone interview. ``This merger enables us to accelerate our expansion plans.''
While the company is healthy financially, he said, it needs financial backing for the kind of acquisitions it has planned. Uniflex signed the agreement Nov. 16 with Carl Marks. Uniflex shareholders will receive $7.57 a share.
Carl Marks is a New York-based investment bank specializing in management buyouts. Newco, a subsidiary of Carl Marks, was formed for the deal, which is set to close in the second quarter of 1999. Uniflex will retain its name.
Uniflex of Hicksville, N.Y., employs 400 at two manufacturing plants, where it converts low density polyethylene film and paper for medical product packaging, specialty bags and security bags.
``Through our promotional product division, we service 90 percent of the Fortune 1000 companies,'' Semel said. ``Our end users are the Fortune 1000 companies and we go through distributors to get to them.''
About 90 percent of Uniflex's products are plastic. For the fiscal year ended Jan. 31, it reported sales of $38 million. The firm expects 1999 sales of $41 million.