Pac One Inc., of Dunwoody, Ga., announced July 16 that it has retained Chicago investment firm Mesirow Financial Inc. to investigate a possible sale of the company.
Pac One processes and converts polyethylene film for flexible packaging for the medical, retail, personal-care, lawn and garden, and other end markets.
``Pac One has built a great network of plants and positioned itself to be a leading midtier supplier of flexible packaging,'' said Mesirow's Jonathan White. ``[Pac One] realizes that now is the right time to find a strategic partner that has the long-term investment horizon to fulfill Pac One's potential.''
In a news release, President Allen Barnes said a sale would free up the company to focus on its core customers.
``We believe the sale of Pac One to a strategic industry player will allow us to reach the next level in our growth plan as a premier midtier supplier of flexible packaging solutions,'' Barnes said.
The company employs a total of 300 at its New Hope, Minn., and Summit, Miss., facilities, according to Plastics News' most recent ranking of North American film and sheet producers. Dunwoody is the corporate headquarters.
Barnes also announced the company has restructured operations at its New Hope facility by dropping some lower margin, noncore customers.
``By focusing on our core customers in the New Hope facility, Pac One will be positioned to provide better service to key customers, reduce operating costs and increase profit levels,'' Barnes said in the release.
``New Hope can then operate with the same high levels of quality and productivity we currently enjoy in our profitable Summit operations,'' Barnes said. He declined to specify which customers Pac One considered core.
The New Hope location is primarily a printing and converting operation; the Summit location operations include integrated extrusion, printing and converting.
Pac One reported 1999 sales of about $30 million. Its 2000 sales figures were not available.
Mesirow Financial Inc. has advised numerous plastics and packaging businesses on mergers, acquisitions, placements and divestitures.