Consolidated Container Co. LLC plans to expand its stake in containers for consumer products and chemicals by acquiring Mesa Industries Inc. of High Point, N.C.
CCC and Mesa said June 7 they expect to finalize the deal in the next several weeks. They did not release terms of their agreement.
CCC will get nine blow molding operations. Eight of them are on-site installations at customer plants, which will boost the number of on-site installations operated by Atlanta-based CCC to 24.
Mesa also will sell its Thomasville, N.C., blow molding plant that makes a range of custom and proprietary high density polyethylene containers. The acquisition will expand CCC's locations in North America to 70.
``Mesa is a terrific fit,'' said Keith Brower, CCC's vice president of strategic initiatives, in a telephone interview. Mesa will broaden CCC's on-site-installation end markets, which have been concentrated in dairy and water. The deal will bring new customers to CCC, he added. Also, the company is well-run and most key personnel, including Mesa President Paul Scott, have agreed to continue with the business, Brower said June 7.
CCC will get on-site blow molding operations in Statesville and Asheville, N.C.; Abingdon, Va.; Chambersburg, Pa.; Dupo, Ill.; Dallas; and Palm Coast and Deland, Fla. Most of the installations blow mold HPDE containers, but two mold PET. Brower said CCC has no interest in closing any of the operations.
Mesa's main shareholders are members of the Pick family of Auburn, Ala. The company was founded in 1970. It opened its first on-site blow molding installations in 1991. Its products range from 8-ounce bottles to multigallon containers. Mesa's annual sales are about $38 million.
Scott said CCC and Mesa talked occasionally in the past about a potential deal before striking the current agreement. He described the deal as a strategic maneuver by CCC, since the two firms don't overlap much in customers and markets.
CCC had North America blow molding sales of $846.4 million in 2005, but the firm has been expanding aggressively since then. Its most recent deal added Whitmire Container Corp. of Sherman, Texas, to its fold early this year. CCC claims that it has the largest number of blow molding locations in North America and that it can make more than 7 billion containers per year. Of its current plants, three are in Canada and Mexico. It also runs a research and development center in Atlanta.