Packaging giant Rexam plc is strengthening its foothold in the U.S. market with the $154 million purchase of injection molder Delta Plastics Inc. of Hot Springs, Ark.
Rexam of London announced the move Sept. 6. Delta's majority shareholder is private equity fund Stonebridge Partners of White Plains, N.Y., which acquired it in 2003.
Officials said Delta has grown at a rate well above the market average during the past five years.
The company had sales of $50 million in 2004, making products such as single- and double-walled jars, ribbed closures and smoothed and domed closures. Its end markets include food and personal care.
The deal still must pass regulatory approval in the United States.
The purchase will give Rexam 350 employees, two molding facilities in Hot Springs and a technology center in La Mirada, Calif., where Delta designs and produces its own molds and materials-handling equipment.
``It will increase our presence in the important U.S. market and we foresee a number of synergies in areas such as raw materials purchasing, technology access and additional sales,'' Lars Emilson, Rexam's chief executive officer, said in a news release.
According to Stonebridge's Web site, Delta was founded in 1991 by a group of executives.
``It's a very attractive specialty plastics operation which will fit in well with our existing business,'' Andrew Mills, Rexam's group communications director, said in a Sept. 7 telephone interview. ``It's in line with our strategy to grow the plastics packaging business with bolt-on acquisitions.''