Film and sheet extruder Sigma Plastics Group of Lyndhurst, N.J., has acquired Allied Extruders Long Island City in a deal that closed June 26.
Allied Extruders LIC operates one plant in Long Island City, N.Y., with a roughly 80,000-square-foot facility and more than 60 employees.
``We just see opportunities for consolidation,'' said Andrew Teo, who will serve as chief financial officer of the newly formed Allied Plastics Holdings. ``Allied is a good fit for the Sigma Plastics Group.''
Allied was founded in 1969. It makes custom monolayer and coextruded polyethylene films. Those films are used in specialty food packaging, laminations, stand-up pouches, and produce and coffee films, to name a few applications.
The company uses 45 million pounds of resin per year, mainly low- and linear low-density PE. It had been owned by private equity firm Red Diamond Capital of New York, a private equity firm funded in large part by Mitsubishi International Corp., the U.S. subsidiary of Japan's largest publicly traded company. Red Diamond had owned Allied for three years.
Red Diamond Managing Director Bret Russell did not return a call seeking comment.
Menash Oratz will stay on as president and chief operating officer of Allied, Teo said in a June 28 telephone interview. Oratz was not immediately available for comment.
Mark Teo will serve as chairman and chief executive officer of Allied Plastics Holdings. Allied's Manny Rosenfeld was named vice president of operations.
``The company is a perfect fit to our acquisition mold, a strategy we will continue in the future,'' Mark Teo said in a news release.