Sigma Plastics Group has agreed to buy a Jacksonville, Fla., custom bag and film plant from PCL Packaging Corp.
Sigma, based in Lyndhurst, N.J., expects to expand the operation within two years, Chairman and Chief Executive Officer Alfred Teo said March 10.
The plant, now known as the Coastal Plastics Division of PCL, will change its name to Coastal Films of Florida and become a wholly owned subsidiary of Sigma's film and bag unit, Alpha Industries.
About 75 people work at the 68,000-square-foot plant, Teo said.
``Right now, we're expanding and growing in [the Southeast],'' Teo said. ``We have plants in North and South Carolina and now we have one in Jacksonville. The plant has a lot of room to grow.''
The Jacksonville facility makes 30 million pounds of polyethylene film annually. The company would like to add equipment and expand that total to 50 million pounds by 2007, he said. The plant now operates 12 extrusion lines and some bag-making equipment, he added.
Oakville, Ontario-based PCL opted to sell the plant to focus on its printed carryout-bag business, said Thomas Blaige, CEO of investment banking firm Thomas Blaige & Co. of Chicago. The Jacksonville plant focuses more on industrial and converter films and bags. Blaige's group handled the sale, which attracted several bidders, primarily processors, he said.
PCL has five remaining plants in Canada and the United States.
The deal is to close March 31.
Sigma ranked seventh on Plastics News' ranking of film and sheet makers last year. The company, which had 2003 sales of $960 million, has been busy acquiring other film and bag processors and expects to record more than $1 billion in sales this year, Teo said.