Tredegar acquiring Exxon films business
RICHMOND, VA. — Tredegar Industries Inc. will get a bigger stake in medical films and packaging when it acquires Exxon Chemical Co.'s films business.
The two companies announced April 26 that they reached an agreement for the purchase, about 21/2 months after they announced they were in negotiations. Terms will not be disclosed until the deal closes, probably by the end of May.
The Exxon operations are big in packaging, personal hygiene and medical markets. Tredegar does some business in those markets and is a major in industrial and agricultural markets.
Exxon's film plants are in Lake Zurich, Ill., and Pottsville, Pa. Tredegar spokesman Edward Cunningham said he expects that his firm will keep both open. Tredegar's film operations are in Carbondale, Pa.; Legrange, Ga.; Manchester, Iowa; Newburn, N.C.; Tacoma, Wash.; and Terre Haute, Ind.
Exxon said last fall it was seeking a buyer for its film business, which Plastics News estimates has annual sales of about $125 million. Richmond-based Tredegar had film sales of $287 million and profit of $53.8 million last year.
Tenneco Oks spinoff for packaging, auto
LAKE FOREST, ILL. — Tenneco Inc.'s board of directors has approved the separation of its packaging and automotive businesses into two separate companies, involving a tax-free spinoff to Tenneco shareholders. The headquarters for the companies will remain in Lake Forest.
The new packaging company is expected to have 1999 sales of $3 billion. It makes and sells products for the food-service, consumer, protective, flexible and institutional/industrial markets. The firm's products include molded fiber packaging and disposable aluminum, foam and clear plastic food containers, protective packaging, polyethylene bags, medical devices and industrial stretch wrap.
Tenneco Packaging is the No. 1 thermoformer in North America, with related sales of $1.07 billion, and the No. 8 film and sheet manufacturer, with sales of $640 million, according to Plastics News' most recent rankings.
Abbott board rejects anti-PVC resolution
ABBOTT PARK, ILL. — A proposal to require medical device maker Abbott Laboratories to find alternatives to PVC got less than 3 percent of the votes cast at an April 23 shareholders meeting, meaning the item cannot be brought up next year.
``I thought for sure it would get over 3 percent so we could resubmit it,'' said Sister Regina Murphy, an official with the Interfaith Council on Corporate Responsibility in New York.
The council was one of several religious and labor organizations asking the Abbott Park-based firm to move away from PVC.
Abbott, however, said it opposed the proposal because PVC's ``unique properties and long history of safe use in life-saving medical products, during which it has been widely studied, clearly support it as the material of choice in many such products.''
Abbott did agree to meet with the shareholders pushing the anti-PVC resolution, however, Murphy said.
The Abbott vote came less than a month after the other large maker of PVC intravenous bags, Baxter International Inc., said it was beginning a long process to find alternatives to PVC.
Bouble J becomes Clarion's latest buy
SCHAUMBURG, ILL. — Clarion Technologies Inc. continues on its acquisition spree by purchasing custom injection molder Double J Molding Inc. of South Haven, Mich.
Double J runs two plants in Holland, Mich., mainly molding auto parts. Johnson Controls Inc., where some Clarion executives used to work, is Clarion's biggest customer. Double J had sales of about $21 million last year.
Clarion will continue with a 42,000-square-foot addition being built at one of Double J's plants and install more presses, James Hostetler, Clarion vice president of corporate development, said in a telephone interview from the firm's Schaumburg headquarters. Double J now has 62,000 square feet of space and 40 injection presses, with clamping forces of 55-500 tons.
Clarion exchanged shares and assumed Double J's outstanding debt in the deal, but officials did not reveal the value of the purchase. Clarion announced the acquisition agreement April 28, about a month after it said it was buying product development and engineering firm Mito Plastics Inc. of Jenison, Mich.
Last fall, Clarion bought Triangle Plastics Inc. of Montpelier, Ohio, and Clarion recently opened an office in Holland to help it expand Tier 2 automotive sales.