Sigma Plastics Group announced Sept. 30 it has beefed up its trash bag and industrial film businesses by acquiring Republic Bag Inc., which runs two factories in Houston and Corona, Calif.
Sigma owner Alfred Teo said Republic runs about 30 blown film lines, consuming 60 million pounds of polyethylene a year. Republic employs about 150, he said. Terms were not disclosed.
The deal signals that Teo remains focused on building his Lyndhurst, N.J.-based plastic bag giant - even as he faces insider trading and other charges from the federal government and the Securities and Exchange Commission. The charges stem from his ownership interest in Musicland Stores Inc.
Teo, Sigma chairman and chief executive officer, said the Musicland allegations have not been a distraction to his management of Sigma. The issues are separate, he said in an Oct. 1 telephone interview.
``It has nothing to do with my plastic business,'' he said. ``The legal problem is with my investments.'' He declined to comment on the charges.
According to a news release, Sigma has added Republic Bag Holdings Inc., a new entity that includes Republic Bag and Republic Manufacturing Group Inc. Dick Schroeder, RBH's president and chief operating officer, said Sigma ownership will help the company grow.
Republic Bag, founded in 1976, makes can liners, food bags, gaylord box liners, industrial film, pallet covers and mattress bags. Republic's Envirobag contains at least 90 percent recycled content, including 30 percent post-consumer material. Republic uses low, linear low and high-molecular-weight high density PE.
Besides Schroeder, other officers of RBH are Steve Schroeder, executive vice president of sales; Steve Fritz, vice president of manufacturing; Chris Mayer, vice president of sales for the eastern region; and John Reier, chief financial officer.
Sigma now runs 28 plants in North America. Sigma placed No. 7 in Plastics News' recent ranking of North American film and sheet makers, generating related sales of $935 million in 2003.