Alloyd/SCA Packaging has bought the assets of California-based thermoformer Progressive Plastics Inc., a deal that adds bulk to Alloyd's western operations.
Alloyd will transfer one or two light-gauge thermoforming lines from Progressive's plant in Ontario, Calif., to Alloyd's facility in Tijuana, Mexico, Alloyd President Ron Leach said June 10. The firm also purchased Progressive's customer list, adding volume for the Mexico facility, he said.
Progressive's owners had decided to retire and sell the assets before Alloyd stepped in, Leach said. The California firm, a small maker of clamshell and blister packaging for more than 20 years, will close its operation, he added.
Alloyd discovered the asset sale while on a hunt for new acquisitions. Alloyd itself was purchased in November by Svenska Cellulosa Aktiebolaget - a paper packaging giant in Stockholm, Sweden, with about $12 billion in annual sales - and has been given a mandate to grow the business quickly, Leach said.
Alloyd makes clamshell and blister packaging, blister-packaging machinery and heat-seal tooling.
The search for new properties could mean a rapid rise in the number of Alloyd plants, Leach said. Alloyd, based in De Kalb, Ill., operates six plants and is part of SCA North America, based in Philadelphia.
``Instead of a six-plant platform, we may end up with 12-15,'' he said. ``Of course, this will happen over a period of time, but SCA has aspirations of that magnitude. There are a lot of small, regional thermoformers all over the country, and we're exploring acquisitions of companies of all sizes.''
Alloyd recently announced plans to close a plant in Fontana, Calif., by the end of June and shift capacity to its Tijuana and Nogales, Mexico, sites.
SCA North America reported $83 million in thermoforming sales last year.