Flexible packaging firm Cello-Foil Holding Corp. has acquired film converter and printer The Packaging Group of Concord, Ontario, as TPG works to rebuild itself.
The transaction, finalized Sept. 8, includes one plant in Concord, Ontario, which officials say will stay open, and 160 employees.
The deal comes just a few months after a change in ownership at Cello-Foil. Sun Capital Partners Inc. of Boca Raton, Fla., had acquired Cello-Foil Products Inc. of Battle Creek, Mich., in July, forming Cello-Foil Holding as a platform to acquire other flexible packaging companies.
Officials said it will not be the last acquisition for Sun Capital this year.
Cello-Foil has a presence in markets for cereals, bakery goods and snack foods, in addition to pharmaceuticals and tissues. TPG primarily serves the meat, poultry and seafood market.
Ted Hui, TPG's president, said by telephone Sept. 9 that his firm will keep its name and he will stay on as president.
``We've gone through some difficult times over the last couple years,'' Hui said. ``We're confident with the support of Cello-Foil Holding that we'll be able to rebuild the company and be much stronger going forward. We're hoping to put additional investment into Concord and be more involved in the meat, poultry and fish marketplace.''
Hui said TPG has been hurt by increases in raw material costs over the past few years and the weakening of the U.S. dollar against its Canadian counterpart, pushing the firm in May to file for protection under Canada's Companies' Creditors Arrangement Act.
TPG in June auctioned off assets of two subsidiaries, J&J Bag in Toronto and Barrier Packaging Inc. of Delta, British Columbia.
Jack Knott, chief executive officer of Cello-Foil Holding, said TPG has been a prominent name in the flexible packaging industry for 15 years.
``We think there is tremendous opportunity in the flexible packaging sector,'' Knott said in a news release. He did not return calls seeking comment before deadline.