UFP Technologies Inc., a thermoformer and fabricator of packaging and specialty products, has acquired Pacific Foam Inc. for an undisclosed amount, giving the Georgetown, Mass., firm its first West Coast operation.
Pacific Foam, which makes specialty foam products for the health and beauty industry, has annual sales of about $8 million.
``Pacific Foam gives us a strategic West Coast presence to complement our existing strength in the Eastern and Midwest markets,'' said R. Jeffrey Bailly, UFP's president and chief executive officer. ``The company has a strong position in an attractive niche that meshes well with our specialty foam growth strategy.''
Pacific Foam operates one plant in Ventura, Calif., and employs 100. Thermoforming constitutes less than 1 percent of its business. The majority business, fabricating, involves coating, four-color printing and laminating foam and plastic. The firm makes products such as abrasive nail files and anti-fatigue mats.
Like UFP, Pacific Foam is an authorized producer of Zotefoams products. Zotefoams plc, based in Croydon, England, claims to be the largest producer of polyethylene and polypropylene block cross-linked foams.
``Pacific Foam has similar technologies to us in their laminating, cutting and slicing,'' Bailly said in a telephone interview.
``One of our strategies is acquisition,'' he said. ``I think our industry is in the process of consolidation. Eventually, we want to have a national base of companies, sharing things such as technology, customers and purchasing power. About 50 percent of our growth will come through acquisition. We're looking for more companies just like [Pacific Foam].''
UFP runs about a dozen plants, mainly in the Midwest and on the East Coast. Nearly 80 percent of the firm's business is in the foam and plastic industries. The other 20 percent of UFP's 1997 sales of $45 million comes from its Moulded Fibre Technology division, which makes packaging products from 100 percent recycled paper.
UFP reported thermoforming sales of $7 million last year. The firm thermoforms all resins for the food packaging, medical, household-care packaging, personal-care packaging, electrical, agricultural, automotive, industrial and consumer products markets.