Protective packaging company Tuscarora Inc. has continued its recent string of acquisitions by purchasing two more small, U.S.-based companies that add to its product mix.
The firm, based in New Brighton, Pa., bought Southeastern Packaging Inc. of Kennesaw, Ga., on Sept. 5 and H&R Industries Inc. of Beecher, Ill., on Aug. 28. The companies differ in product makeup and customer base, but both provide more growth opportunities, said Tuscorora President David O'Leary.
The firm plans to continue its acquisition trend, consolidating a still-fragmented market in protective packaging. Tuscarora claims to be the largest maker of protective packaging in North America, with sales this year expected to reach about $310 million, O'Leary said.
``We continue to grow both geographically in North America, and to extend our product lines,'' O'Leary said in a Sept. 5 telephone interview. ``We're evolving the business to reflect markets that will continue to grow and prosper in North America.''
H&R will expand Tuscarora's temperature-sensitive product line and will be added to its SCA Thermosafe Division, he said. Tuscarora is owned by European packaging leader Svenska Cellulosa Aktiebologet, also known as SCA, of Stockholm, Sweden. SCA also is known as Swedish Cellulose Corp.
H&R has carved a niche in the storing and transport of dry ice and other temperature-sensitive products. Founded in 1974, the company claims to have made the first dry-ice transport containers. While Tuscarora makes a variety of one-way, temperature-safe containers, the H&R packages are returnable.
The containers mainly are rotational molded in polyethylene and injected with polyurethane to create the insulation. The containers also ship frozen and perishable food products and some chemicals, O'Leary said.
Tuscarora acquired the company's assets for an undisclosed price, including the rights to its Insul-Stor container systems brand name. H&R has plants in Beecher and Spartanburg, S.C., and about 50 employees. H&R recorded about $8 million in sales last year, O'Leary said.
Tuscarora also will expand the capabilities of ThermoSafe, including a testing and design center at Harleysville, Pa.. The unit's headquarters will move from Wheeling, Ill., to a larger site in Arlington Heights, Ill., later this month.
Southeastern will help grow Tuscarora's more-traditional protective product market. The firm makes and converts corrugated paper packaging for customers in the Southeast, O'Leary said. Those corrugated boxes and cartons will be integrated with cushioned foam and other protective products - already made by Tuscarora - that fit in the interior of the box, O'Leary said.
Southeastern recorded about $11 million in sales last year.