Tekni-Plex Inc. plans to build its closure and liner products into a core business with its acquisition of Tri-Seal International Inc.
Tri-Seal, which extrudes and coextrudes cap liners and seals, had 1997 sales of $20.9 million.
``This is a small part of the company now and the acquisition of Tri-Seal will increase that substantially so that it will be much more of a core business,'' William Walkowiak, Tekni-Plex vice president of investor relations, said in a telephone interview.
He did not divulge what percentage of Tekni-Plex's overall sales comes from its current liner business. Tekni-Plex plastic liners are used in pharmaceutical and protective packaging. The acquired technology complements its traditional laminated closure-liner business, as well as its dispenser gasket product lines.
Tekni-Plex will finance the purchase from its operating cash flows. Terms were undisclosed. The firms expect to finalize the deal during the first quarter.
``Tri-Seal will be integrated into Tekni-Plex relatively quickly because Tri-Seal is stronger in this area and we will actually integrate our product more into them,'' Walkowiak said.
Tri-Seal's Blauvelt, N.Y., headquarters plant operates seven profile and six foam sheet coextrusion lines. The company employs about 110. The closure and liner business will be centered at Blauvelt, Walkowiak said.
Tri-Seal's products, marketed under the Tri-Seal, Tri-Gard and Tri-Shield trademarks, are made from polypropylene, polyethylene, ethyl vinyl acetate, PVC and thermoplastic elastomers for a range of markets.
Somerville, N.J.-based Tekni-Plex makes packaging, products and materials for health-care, consumer and food markets. It had sales of about $500 million last year.