Clondalkin Group of Dublin, Ireland, has diversified its North American flexible packaging holdings by acquiring Direct Plastics Group.
Direct Plastics is an Orangeville, Ontario, polyethylene blown film extruder and converter. With annual sales of about $30 million, it is among the top 10 biggest flexible packaging firms in Canada.
Direct augments Clondalkin's main U.S. plastics subsidiary, Fortune Plastics Inc. of Old Saybrook, Conn. Direct, which is more consumer-oriented than Fortune, does a good amount of value-added printing and laminating, and is similar to the type of plastics holdings that Clondalkin has in Europe, officials said. The PE extruder's key markets include frozen food, confectionery, horticulture and animal care.
``We are the first operation of this type for Clondalkin in North America,'' said Direct Plastics President Craig Harris in a telephone interview. Harris and operations Vice President Neno Zletek - Direct's former co-owners - will continue with the business.
Fortune Plastics' annual sales have been running at about $130 million, with its five plants making mainly industrial-grade film, sheet and bags, such as can liners.
The Direct acquisition continues Clondalkin's flexible packaging investments in North America and Europe, Clondalkin Chief Executive Officer Norbert McDermott said in a July 9 news release. The firm will continue to hunt for North American acquisitions while Direct and Fortune grow internally, said Joe Moynihan, chief operating officer for Clondalkin Group Inc., the U.S. subsidiary in Philadelphia.
In early July, Direct completed a move from Brampton, Ontario, to Orangeville. The company acquired Performance Packaging Inc. of Orangeville in early 2005 and began relocating there when its Brampton plant lease expired.
Direct's machinery includes five blown film lines, two eight-color printing presses, slitters, laminators and bag-making equipment. It employs about 125. The operation is the former site of a Union Carbide Corp. film and bag plant sold in the early 1990s to Performance Packaging.
Clondalkin has annual sales of more than $1.1 billion in flexible plastics packaging; and paperboard boxes, labels, lids and printed packaging.