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February 21, 2000 01:00 AM

Tuscarora picks up two packaging firms

Jinida Doba PLASTICS NEWS STAFF
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    Tuscarora Inc. of New Brighton, Pa., recently acquired the operating and business assets of two protective packaging manufacturers. In the deals, scheduled to be finalized by March 1, Tuscarora has purchased equipment, inventory and customer lists from Cushion Packaging Co. in Dallas and Erickson Wood Products of Belmont, Calif.

    Brian C. Mullins, Tuscarora's chief financial officer, would not disclose the amount paid for the two companies' assets.

    However, with the additional assets, Mullins said the company expects to see an annual sales increase of $2.5 million. Tuscarora reported more than $233 million in sales last year.

    "They bring new customers to Tuscarora and, in their cases, they both bring certain skills that we do not have in the locations where we're integrating those facilities," Mullins said in a telephone interview.

    Die cutters, saws and hot-wire cutters from Cushion Packaging will be moved and consolidated with Tuscarora's specialty packaging plant in Dallas, Mullins said.

    Mullins added that wood-cutting equipment, saws, nailing machinery, wood and some cushioning materials will be moved into Tuscarora's molding and integrated materials facility in Hayward, Calif.

    Cushion Packaging is a custom fabricator of interior foam cushioning products for packaging and transporting fragile products. Erickson manufactures custom wood pallets and containers to transport sensitive electronic devices.

    Mullins said the additions complement Tuscarora's specialty packaging capabilities.

    "In our plant in Hayward, we don't have a woodworking facility," he said. "In Dallas we have fairly extensive woodworking and corrugating equipment, but no foam."

    Mullins said such ventures are an important part of Tuscarora's success since the company was founded in 1962.

    "In the last 20 years we've done over 40 acquisitions," Mullins said. "This is a fairly normal thing for us to do. It's certainly not out of the ordinary in the way we run our business."

    >From 36 manufacturing locations in North America, Mexico and the United Kingdom, Tuscarora manufactures custom molded products made from expanded foam plastic materials, corrugated paperboard, molded and die-cut foam plastics, thermoformed plastics and wood for high-tech, automotive, consumer electronics, office furniture and appliances markets.

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