After reporting a successful end to its fiscal year and first quarter, Tuscarora Inc. also announced it is acquiring Hillsboro, Ore.-based protective packaging manufacturer Technapack Inc.
The deal should be final by mid-January, according to a Tuscarora statement. Brian Mullins, Tuscarora's vice president and chief financial officer, would not disclose terms of the acquisition.
With the additional $6 million in annual sales from Technapack, New Brighton, Pa.-based Tuscarora stands to increase its share of the electronics packaging market, which Mullins said makes up 44 percent of its annual sales of $273.7 million.
This year's sales are up from last year's reported $233.8 million. Tuscarora reported 2001 first-quarter sales at $76 million; compared with $64.7 million for the same period last year.
Technapack's 43 employees at the 70,000-square-foot facility will be offered continued employment with Tuscarora. John VanderWerf, Technapack president and chief executive officer, will be named general manager of Tuscarora's Northwest operations, according to a Tuscarora news release.
During a telephone interview, Mullins said Tuscarora's first-ever Pacific Northwest operation primarily will serve high-tech and electronics customers in Washington and Oregon.
"[The acquisition] offers the ability to provide product in primarily Oregon and Washington, and expose parts of northern California," he said. "Our closest plant is in the San Francisco Bay area."
Technapack makes corrugated paperboard, foam and wood protective packaging for those industries. About one-third of Technapack's sales were generated by foam products, Mullins said.
Mullins said he is confident in what the market will bring to Tuscarora, despite slowed consumer spending, especially for items like home electronics and personal computers.
"It's a substantial market for us," Mullins said. "There are going to be some short-term slowdowns ... but all in all we have confidence the market will continue to be strong."
Tuscarora makes protective packaging from molded and die-cut foam, corrugated paperboard, wood and thermoformed plastics at 36 plants in North America and Europe.
Tuscarora also serves the telecommunications, automotive and recreational vehicles markets.