A&E Products acquires Plastics Inc.
CHICAGO - Home Products International Inc. agreed to sell its commercial plastic servingware business to reduce debt and to concentrate on retail businesses.
HPI of Chicago said June 7 it has a definitive agreement to sell Plastics Inc. to plastic hanger major A&E Products Group LP, a unit of Tyco International Ltd. The firms did not disclose terms.
A&E Products President Jim Hartman said the purchase will launch his firm into servingware, although another Tyco International subsidiary, Amcell of Louisville, Ky., is in that market. Amcell is part of Tyco Plastics. Tyco is considering whether to combine Amcell with Plastics Inc. after the purchase is done.
HPI Chairman and Chief Executive Officer James Tennant expects the deal to be completed in July. Plastics Inc.'s annual sales are about $40 million. It runs one plant in St. Paul, Minn. HPI acquired Plastics Inc. in 1998 as part of its purchase of Newell Plastics. The other part of the former Newell Plastics, Anchor Hocking Plastics Inc., makes food-storage containers and will continue under HPI. Plastics Inc. molds food containers, bowls, cups and similar goods for institutional markets, caterers and specialty retail stores.
A&E Products in Secaucus, N.J., is a dominant player in North America's plastic clothes hanger market. It had estimated injection molding sales of $260 million for the year ended Sept. 30.
The divestiture of Plastics Inc. is the latest streamlining moves begun at HPI last year. Measures include closure of its Leominster, Mass., injection molding plant and cutting staff.
Yorkbridge selling two Canadian plants
MISSISSAUGA, ONTARIO - Two operations run by custom and stock blow molder Yorkbridge Packaging Inc. are for sale.
The Mississauga firm's headquarters and Calgary, Alberta, plant are for sale. PricewaterhouseCoopers Inc., the firm's receiver, planned to accept offers for the Mississauga plant's assets and business until June 8 and for the Calgary plant until June 15.
Yorkbridge filed for bankrutcy May 28. PricewaterhouseCoopers will hold a meeting for creditors for the Mississauga operation June 20.
A Yorkbridge plant in Pleasantville, N.J., is not affected by the bankruptcy in Canada and is not for sale, Chief Executive Officer Warren Watson said by telephone. That facility, as well as those in Mississauga and Calgary, continue to operate.
The Mississauga facility includes 21 injection and extrusion blow molding machines. It also has preform production machinery and decorating capability. The Calgary operation, called Yorkbridge Packaging (West) Inc., has 14 extrusion blow molding machines. It also can make preforms.
Watson said the bankruptcy resulted from low production volumes that could not cover the firm's costs. He declined to provide estimated assets and liability figures, and PricewaterhouseCoopers officials did not return calls to provide numbers.
Yorkbridge went into bankruptcy voluntarily, said President David Birkby. Its major secured lender is Royal Bank of Canada. Yorkbridge reported sales of US$21.8 million for the year ended Nov. 30.
CCL forms venture with PPC America
LIBERTYVILLE, ILL. - CCL Industries Inc. has teamed up with PPC America LLC to produce closures at PPC's plant in Libertyville.
CCL of Toronto will move about six injection presses from its Los Angeles facility to Libertyville. The Los Angeles plant will focus on making plastic tubes. CCL said the equipment transfer should be complete by late September. CCL also does a small amount of closure molding in Plattsburg, N.Y., said Steve Lancaster, CCL chief financial officer and senior vice president.
The venture will have annual sales exceeding US$20 million and employ about 100. Its work will include designing and producing CCL's Press Top brand of closures for consumer product containers. The venture will be called CCL Dispensing Systems and will be majority owned by CCL.
The consolidation will cut costs and put CCL's closure production into a central location on the continent. CCL said PPC is a leader in injection molded closures, deodorant sticks and other custom molded products.
PPC President Peter Gamoff said in a news release the venture will allow PPC to leverage its manufacturing capability with CCL's broad customer base in personal care and cosmetics. CCL does custom manufacturing of consumer products, makes plastic and aluminum packaging and designs and produces labels. It has annual sales of about C$1.6 billion (US$1 billion).