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April 12, 1999 02:00 AM

DURALAM BUYING CASING MAKER

Michael Lauzon
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    Duralam Inc. will expand in flexible packaging for meat by acquiring the plastics packaging division of Devro-Teepak Inc.

    Duralam will transfer the division's assets from Devro-Teepak's plant in Danville, Ill., to Duralam's soon-to-be-opened Neenah, Wis., facility, said Dan Baird, Duralam vice president of sales.

    The Devro-Teepak operation converts purchased film into packaging for meats such as fresh ground pork sausage. Duralam President Marvin Schneider said in a news release that his firm can expand the packaging technology into markets such as refrigerated cookie dough and cheese spreads.

    In a telephone interview, Baird would not disclose what types of films are used to make the packaging, but he said it will be new, proprietary technology for his firm.

    Baird said the deal is a natural fit because many of the Devro-Teepak customers also are Duralam customers. Duralam makes coextruded forming webs for meat and other flexible packaging.

    Duralam will acquire printing presses and laminators at Danville, commercial contracts and brand names such as Unilam, Unilox and Unilon for undisclosed terms. Baird said the deal is scheduled to be done by May 14 and equipment will be relocated to Neenah shortly afterward.

    Devro-Teepak of Naperville, Ill., will focus on its core business of making casings for sausages and other meats from nonplastic materials such as collagen.

    Baird estimated the deal will boost Duralam's sales for the next fiscal year, beginning July 1, to nearly $70 million. He predicts sales for the current fiscal year will be about $50 million.

    Duralam will open its new Neenah facility in the spring. The 60,000-square-foot plant is about five miles south of its Appleton, Wis., plant and headquarters. The Devro-Teepak deal will add about 60 jobs at Neenah.

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