In its second acquisition in three weeks, Cincinnati-based Ampac Packaging LLC has purchased Mohawk Northern Plastics Inc., for a significant expansion into frozen food packaging.
Mohawk of Auburn, Wash., also gives Ampac a production location in the northwestern United States, said John Baumann, Ampac's president and chief executive officer.
``This is our primary extension into frozen foods and expands our presence in that market substantially,'' Baumann said in a telephone interview May 3, when Ampac announced the deal.
Terms were not disclosed.
The acquisition follows Ampac's April 16 announcement that it was buying the security-bag production assets of Sealed Air Corp.
Both Ampac and Mohawk make flexible packaging, all the way from extruding the blown film to converting and high-end printing to turn out the final package.
Plastics - including film, printed roll stock, bags, stand-up pouches and laminations - accounts for about $200 million of Ampac's $300 million in total sales, Baumann said. Including Mohawk, Ampac now has 11 factories that employ 1,200 people in the United States, Europe and Asia. Ampac runs four U.S. plants, in Cincinnati; Cary, Ill.; Minneapolis; and now Auburn.
Ampac makes food packaging, including blown film with up to nine layers for barrier packaging, retail shopping bags and tamper-evident security bags for holding cash, casino tokens and high-end merchandise like jewelry. The company also serves medical and pharmaceutical customers.
Ampac's food-packaging markets include fresh produce, meat and retort packages. Mohawk also makes produce bags. On the frozen-food side, the company markets its packaging films and over wrap.
Mohawk, which will become part of Ampac Flexibles, employs 220 and generates sales of around $50 million. Mohawk recently has invested in extrusion, pre-press and printing equipment to beef up its position in frozen foods. Ampac said Mohawk's entire leadership team will continue with the company, including President Dan McFarland and its chairman, Bill Gates.
The company was founded in 1971 as a bag converter, then was renamed Mohawk in 1995 after buying the Mohawk unit of converter Printpack Inc.
Last year, Ampac Packaging received a shot of new money when Prudential Capital Group of Chicago and Boston-based Falcon Investment Advisors bought into the company. Ampac managers retained their ownership stake.
The recapitalization has allowed Ampac to continue its growth plans, put in place six years ago, Baumann said.
``Ampac is moving consistently along our strategic path, which is to expand our position in food, medical and security packaging.''