Protecpac has purchased a small, Canadian protective packaging competitor as it looks to further its base after being spun off three years ago as a separate company.
The Lachine, Quebec-based company acquired GW Worldwide Protective Packaging Corp., a family-owned firm that makes bubble mailers and coextrudes rolls of polyethylene bubble film, said Jan Willem Wieringa, general manager of Protecpac. The sale, for undisclosed terms, was announced Aug. 24.
The acquisition was partly about growth for Protecpac and partly about technology, Wieringa said Aug. 25. GW, based in Brampton, Ontario, had developed an all-plastic bubble mailer that would replace the traditional combination of Kraft paper and a bubble liner to mail packages, Wieringa said.
``It has several extra features that make it good for courier delivery, like puncture-resistance and waterproofing,'' Wieringa said. ``[GW was] trying to get some business for it, but without much sales and marketing [support]. That was one reason for the purchase.''
The sale also gives Protecpac some equipment and added volume to help fuel its growth plans, Wieringa said. As an added benefit, the sale eliminates another competitor in Ontario, he added.
GW Worldwide was founded only two years ago by Edgar Glyn-Williams and his daughter Joanna. The company had extra space at its electric-motor factory in Brampton and decided to buy an extruder, converting equipment and bubble-making mailer equipment, Wieringa said. But the duo had difficulty making the new business an instant success, he added.
GW operates from a 30,000-square-foot plant with only a few employees. At least temporarily, Protecpac will keep the plant open while it decides whether to consolidate equipment or space, Wieringa said.
Protecpac was founded in 1977 as part of parent company Induspac Packaging Group Inc., a packaging company based in Lachine that includes several divisions. In 2001, Protecpac was spun off separately and its management given responsibility to grow the business.
``That's when our growth really started happening,'' Wieringa said.
The protective packager has two plants in the Montreal area, including one in Lachine, and another facility in Mississauga, Ontario, Wieringa said. The company makes a variety of bubble wraps and cushioning, protective foam, adhesive and cohesive film, laminated products, and loose-fill and single-faced pouches and sheets.
The company is looking for other growth opportunities, whether through acquisition or new facilities, Wieringa said. One of its goals is to penetrate the U.S. market, where large companies such as Pactiv Corp. and Sealed Air Corp. are strong, he said.
Induspac also includes Protecplast, a maker of custom film and thermoformed packaging that is based in Dorval, Quebec, and both corrugated-sheet and integrated-materials operations. The privately held company does not disclose sales figures.