Apollo Plastic Corp. has expanded in polyethylene film by acquiring the film extrusion and related assets of Quality Films Inc. in Schoolcraft, Mich.
The purchase increases to 14 the total number of PE film extrusion lines Apollo operates at its Jersey City, N.J., headquarters and at Quality Films' Schoolcraft plant, according to Apollo Chief Operating Officer Josh Cantor. He declined to provide terms of the recently concluded deal.
Apollo will continue to run film extrusion lines in Schoolcraft, where it already has installed new bag-making equipment, Cantor said in a telephone interview. Much of Apollo's output is converted to bags ranging from specialty medical types to heavy industrial bags. The firm also extrudes PE sheet and does printing. All processes are performed in-line with film extrusion.
Apollo's PE throughput poundage has doubled in the past 18 months and the firm needed more capacity, Cantor said. Apollo President Ray Glenn said in a June 12 news release that the purchase is part of Apollo's strategy to be a nationwide supplier of PE film.
Quality Films will continue to exist as a film and bag supplier serving customers with products made to its specifications by Apollo, according to Quality Films President Richard Rabbers. His family started the company in 1967.
Cantor estimated Apollo's sales will reach about $20 million for the year ending June 30. The firm employs about 100, including staff at Schoolcraft.
Glenn said Apollo, founded 42 years ago by his family, restructured its working capital line with Sovereign Bank's Business Alliance Capital Co., increasing working capital to $5.5 million to allow it to grow ``in a capital-intensive and volatile marketplace.''
Great Atlantic Capital Corp. and First National Bank of Three Rivers provided funding for the Quality Films deal.