PCL Packaging Corp. has diversified its packaging business with the acquisition of Coastal Plastics Corp. of Jacksonville, Fla.
Oakville, Ontario-based PCL is big in retail packaging such as carryout sacks and logged sales of $70 million in 2000, Kim Aagaard, PCL president and chief executive officer, said in a telephone interview.
Coastal's product lines include primary packaging that interacts with its contents, such as modified-atmosphere food packaging and shrink wrap. Coastal also makes heavy-duty shipping sacks for lawn and garden uses, custom high density polyethylene trash can liners and general-purpose converting film. Coastal's annual sales are about $12 million, Aagaard said.
Aagaard did not disclose terms of the July 3 deal, in which PCL's U.S. division, PCL Packaging Inc., acquired all of Coastal from John Crawford and other senior managers. The business includes 12 extruders and versatile bag-making and printing equipment in a 65,000-square-foot building. Aagaard said PCL will examine the possibility of consolidating Coastal's plant with an existing PCL facility in Jacksonville that makes merchant film for agriculture and other markets.
Crawford, Coastal's founder, will continue with the operation as a sales consultant for 12-18 months. He said he and Coastal managers decided to sell to ensure the long-term future of the 65-employee business. When the transition is over, the 58-year-old executive plans to retire.
``I want to take time for memories with my family,'' he said.
Crawford led a buyback of Coastal from Mesirow Financial Partners of Chicago three years ago. Then, too, he wanted to ensure the long-term viability of the company when Mesirow was considering what to do with it after owning a majority of Coastal for five years.
Coastal is PCL's second diversification acquisition in about a year. Last summer it entered HDPE bag production by buying assets in North Dighton, Mass., from BPI Packaging Technologies Inc. Other PCL plants are in Pueblo, Colo.; Delano, Pa.; Delta, British Columbia; Saint John, New Brunswick; and Oakville.