Filmquest Inc. has expanded in size and capabilities by purchasing two other film businesses.
The St. Charles, Ill., PET film converter acquired metalizer and coater Film Products Inc. and distributor Patison Trading Co. for undisclosed terms, Filmquest announced Feb. 26. The deals more than triple Filmquest's sales to slightly more than $35 million a year to such markets as food packaging, electronics, automotive and other industrial products.
Filmquest President and Chief Executive Officer John Felinski said the ``bold acquisition plan'' will be followed by more expansion. In a telephone interview, he said the company plans to build a larger converting facility in South Carolina to replace the Greer, S.C., plant it is rapidly outgrowing. Discussions also are under way for more acquisitions, one of which is slated for this summer.
Filmquest's forte of PET film conversion is expanded by Film Products' metalizing and coating of PET, polypropylene and nylon films in Bolingbrook, Ill. Patison of Mason, Ohio, adds a network of distribution locations throughout North America and global film-sourcing contacts. Filmquest Group Inc. is the new name of the merged businesses and its headquarters will be moved within a month to the 65,000-square-foot former Film Products facility in Bolingbrook.
Another Filmquest PET film converting plant, in Minneapolis, Minn., was sold last year to Medalyst Corp., an Inver Heights Grove, Minn., business founded by Felinski.
Felinski said changes in North America's PET film market are driving Filmquest's strategy of acquisition. China is becoming a bigger player in commodity PET films, so Filmquest needs to emphasize more value-added grades among its Questar-brand films. PET film manufacturers in North America and offshore make Questar to Filmquest's specifications, he said. To help it beat the competition, Filmquest plans to align with strategic customers that also emphasize value-added goods.
The extra purchasing clout of the combined company also will help Filmquest compete, Felinski added. The business now turns over about 25 million pounds of PET film annually.
The new Filmquest owners are Felinski; Patison's former President and CEO Don Lipka; and Myron Siegel, a veteran dealmaker who helped structure the merger. Lipka holds the newly created position of vice president of sales. The companies employ about 50.