Printpack buys Independent Packaging
ATLANTA — Flexible packaging major Printpack Inc. plans to expand its bag-making stake by purchasing Independent Packaging LP.
Printpack of Atlanta said April 4 that it signed a letter of intent to buy Independent for undisclosed terms. Independent operates a bag-making plant in Bloomington, Ind., and has its head office in Dallas.
Independent's annual sales have been about $35 million, which make it the third-largest producer of flexible film packaging for the wholesale bakery market in the United States, according to Charles Romanski, president and chief executive officer. The 7-year-old company buys polyethylene film and converts and prints it, Romanski said in a telephone interview.
Independent is privately held by a group of investors based in Dallas, Romanski noted. It employs about 160. Printpack said it expects to complete the purchase by the end of June.
"This purchase allows us to strengthen our position in the bakery market, an important segment in our overall marketing strategy," James Greco, vice president and general manager for Printpack's flexibles division, said in a news release.
Romanksi said the purchase will provide growth opportunities and add products and services for Independent's customers.
Printpack said it has annual sales of about $1 billion. It runs plants in the United States, Mexico and United Kingdom.
Pitt Plastics acquires Capital Poly Bag
PITTSBURG, KAN. — Trash can liner producer Pitt Plastics Inc. plans to expand its business by acquiring Capital Poly Bag Inc. of Columbus, Ohio.
Pitt signed a definitive agreement to buy Capital, a family-owned firm that extrudes and converts polyethylene film into can liners in Columbus and Atlanta. The companies did not disclose terms of the agreement.
Pitt Executive Vice President Randy Orscheln said his company will expand Capital's capacity as it integrates the two businesses during the next eight to 12 months. He did not disclose Capital's annual sales during a telephone interview from Pitt's head office in Pittsburg. Pitt had estimated sales of $60 million in 1999.
Pitt founder and Chairman Gene Bicknell said in a news release that the buyout will provide new opportunities for the firm's customers and employees.
Pitt President Rick Baden noted that Pitt will run Capital as a separate division.
"During the transition phase, we will identify the strengths from each organization that will enhance our operations and/or service," he said in an April 10 news release.
Bicknell founded Pitt in 1971. It runs about 70 extrusion lines in Pittsburg.
Assets of Zygo Mould Ltd. up for sale
TORONTO — Assets of PET container injection mold builder Zygo Mould Ltd. are up for sale.
Quinney & Associates Ltd. of Toronto is accepting offers on the assets until April 19, Quinney announced in a newspaper notice.
Zygo President Gayle Thomas could not be reached for comment. Her husband bought the Toronto company in 1997. She said in an interview last year that the firm badly needed restructuring when she joined Zygo four years ago. Officials at Quinney also were unavailable to comment on the sale or why Zygo's assets are being sold.
Quinney's notice in the April 10 issue of the Toronto Globe and Mail said preference will be given to those tenders that offer to buy all of Zygo's assets.
CPSC likely won't back foam treatment
WASHINGTON — The Consumer Product Safety Commission is about to release a standard for residential furniture flammability that is not likely to recommend that polyurethane foam be treated with flame-retardant chemicals,a commission official said.
CPSC staff is almost finished with a draft standard that commission members will then consider, said CPSC project manager Dale Ray. The proposal previously has been delayed, but Ray said it will be sent to the commission "imminently."
A fire marshals organization has asked CPSC to require that foam be treated, as is required in California, and to require warning labels on furniture saying that PU foam is a key reason why fires spread quickly.