KlÃ¶ckner Pentaplast of America Inc. has purchased the Petco Division of Lavergne Group Inc., thrusting the company into both recycled PET film and a new region for manufacturing.
The acquisition, completed May 26 for undisclosed terms, hands Gordonsville, Va.-based KlÃ¶ckner a facility in Ville d'Anjou, Quebec, to make polyester film. The facility, located near Montreal, is a major producer of recycled-content roll stock and flat sheet, some using 100 percent recycled PET.
Petco has total annual capacity of 36 million pounds, and added its third extrusion line last year, investing $3 million in new equipment and adding about 12 million pounds of capacity.
Lavergne Group's LPC Division will continue to compound thermoplastic blends and alloys from the same Quebec plant, collocating with KlÃ¶ckner but operating separately, said KlÃ¶ckner marketing director Michael Ryan. Lavergne Group President Jean-Luc Lavergne did not return a telephone call seeking comment.
KlÃ¶ckner has a sales office in Ottawa but has not manufactured rigid film in Canada until now, Ryan said. The company has made rigid PET film since 1990 and has seen tremendous growth in the film, he said. The new facility adds capacity and provides better service to customers, especially those in that region, Ryan said.
KlÃ¶ckner makes rigid film from an array of materials and for a host of markets.
``The demand for rigid films for polyester continues to grow,'' he said. ``The recycled product is new for us. But the main differentiator is [gaining] more extruded polyester film products,'' Ryan said.
Petco's film is used for many packaging applications, for food and general-purpose consumer and industrial products, and also is sold to thermoforming companies. The company uses both post-consumer and virgin PET. The Petco Division facility has 45 employees.
Lavergne Group had jettisoned some less-profitable businesses in 2003, including film made from recycled, unfilled polypropylene and ABS. The company also had shifted away from using recycled PET from curbside recycling systems, where the company said too many contaminants were marring surface quality.
Overall, the Ville d'Anjou plant has about 120 employees, including those in the compounding section, according to recent Plastics News reports. The company recorded sales of about $44 million last year but did not break out PET film sales.
KlÃ¶ckner ranked 15th on Plastics News' listing of North American film and sheet manufacturers, with estimated sales of $400 million in 2002. The company is owned by London-based equity group Cinven Ltd.