Winpak Ltd. of Winnipeg, Manitoba, has expanded its product offerings by acquiring the film converting business of Walsroder Packaging LLC for undisclosed terms. Walsroder is owned by Dow Chemical Co.
The acquired business in Willowbrook, Ill., sells roll stock to food companies and converts mill rolls to roll sizes requested by customers. It does not extrude its own film and mainly handles sophisticated multilayer structures. The business does about US$10 million in annual sales.
The operation complements Winpak's modified-atmosphere packaging, said Ken Kuchma, Winpak vice president and chief financial officer. It also adds new product lines, Kuchma said in a recent telephone interview.
Winpak plans to consolidate the business' roll-making and slitting equipment in Winnipeg this year. The business employs about 10 and shares the Willowbrook facility with a separate Walsroder casings operation. The deal officially closed June 30.
In other news, Winpak reported a 38 percent increase in net earnings to US$7.2 million for the second quarter. It said the increase occurred despite higher raw material costs and was attributable to higher sales volumes, better efficiency and reduced expenses.
Sales, at US$127.6 million, were up 11 percent, partly due to higher selling prices. Rigid and lid products, oriented nylon film and machinery sales all showed double-digit growth.
The MAP segment experienced modest growth, while specialty films sales declined because of general weakness in the U.S. economy, the public firm said in a news release.