Ampac Packaging LLC has strengthened its consumer packaging films business by investing in one of its customers, Kapak Corp. of Minneapolis.
Cincinnati-based Ampac bought a majority stake in Kapak, which specializes in stand-up pouches and roll stock. Terms were not disclosed.
One of Ampac's core businesses is supplying high-performance films to Kapak and other consumer packaging producers, said Ampac business development director George Thomas. Ampac's investment in Kapak is a financial partnership to help ensure Kapak has sound financial footing. Kapak will, however, operate as an independent business.
Kapak's expertise includes a range of flexible packaging structures, custom shapes, spout fitments and value-added resealable bags. Its film laminating capabilities complement purchased multilayer films sourced from suppliers such as Ampac. It also runs a rotogravure printing press to provide rugged graphics demanded in applications such as retort pouches.
Thomas said a new generation of sport-drink pouches is one rapidly emerging market Kapak is poised to serve with its range of pouch and spout technologies.
Ampac runs five plants in North America and one in Asia, employing a total of about 600. It is jointly owned by its managers and two private equity firms. Thomas said Ampac's other two core businesses are high-end retail bags and security bags used by financial institutions and law-enforcement agencies. Its blown film products include structures up to nine layers.
Kapak's longtime president, Gary Bell, will continue in that position. Founded in 1961, the firm employs about 80.