Swedish paper and packaging major Svenska Cellulosa Aktiebolaget plans to expand in plastic protective packaging by buying Insulated Shipping Containers Inc.
SCA said it plans to pay $10 million for the Phoenix firm, which specializes in polyurethane foam-based packaging for biopharmaceuticals, blood components and diagnostic samples.
The agreement to buy ISC comes about eight months after SCA bought specialty packaging producer Tuscarora Inc. of New Brighton, Pa. Tuscarora's key markets are electronics, automotive and appliances.
ISC has plants in Phoenix and in Louisville, Ky. Its annual sales are about $12 million, estimated SCA spokesman Peter Nyquist in a telephone interview from Stockholm. Besides medical markets, ISC products are used for semiconductor adhesives and frozen foods.
ISC products include containers made by injecting PU foam between corrugated material, pallets made of such materials, PU molded tubs, and PU injection molded food displays. Many of the products are reusable, and some can be folded flat for easier storage. They can include freezer gel packs to keep contents cold. ISC works closely with customers to find engineered solutions.
SCA's purchase will be made through Tuscarora, and SCA will merge the two packaging businesses.
ISC packaging will become increasingly important as pharmaceuticals become more sophisticated and as governments regulate their transport, said Tuscarora President John O'Leary in an Aug. 14 news release.
ISC will gain wider markets through SCA's global business, noted ISC President Thomas Pringle, who will continue to head ISC after the buyout.