Primex Plastics Corp. has acquired the sheet extrusion business of Gage Industries Inc. of Lake Oswego, Ore. closing the door on the 50-year-old family plastics business.
Terms of the deal were not disclosed.
``Gage's product offering and customer base are a good fit with our organization,'' Primex President Mike Cramer said in a July 18 news release. ``This acquisition will allow us to leverage our strengths in manufacturing and distribution to enhance the value to Gage's customers.''
Gage officials were unavailable for comment. The unit makes custom sheet from ABS, polypropylene, polyethylene and PET, serving the heavy-truck, aftermarket automotive, consumer, technology, packaging and marine markets.
The sheet business was all that remained of the company. Just weeks ago Sabert Corp. of Sayreville, N.J., announced that it had acquired Gage's thermoformed packaging business. Last year Gage sold off its heavy-gauge fabrication unit for $5.3 million to Commercial Vehicle Group Inc. of New Albany, Ohio.
Richmond, Ind.-based Primex plans to integrate Gage's production lines into its Mesquite, Nev., facility, one of 11 Primex plants in the U.S. and the United Kingdom. The integration process is expected to take about a year.
Primex serves a range of markets including food packaging, textile, automotive, health-care, cosmetics, construction, appliances, transportation, toys, graphic arts and pharmaceutical products. With over 100 processing lines, the company extrudes sheet using polystyrene, polyethylene, ABS, polypropylene and polyester, as well as specialty products.
Primex had estimated sales of $342 million in 2006, placing 22nd in Plastics News' North American film and sheet ranking. It employs more than 1,000.
The sale of the extrusion business finalizes a process begun after founder Ripley Gage's death in 2006, as his heirs sold off the firm's three main business units. Gage's children Jeff and Liz ran the family business as partners. Jeff Gage serves on the board of the Society of the Plastics Industry Inc. in Washington.
P&M Corporate Finance LLC represented Gage in both the Sabert and Primex deals, said John Hart, director of P&M's plastics and packaging group in Southfield, Mich.
``We ran a competitive process in that we marketed the [Gage] businesses separately or together,'' he said. ``Ultimately, separating the businesses resulted in a much higher return for the seller.''
Of Primex, Hart said: ``They haven't made a major acquisition in a while, so this is a good addition for their overall business profile.''
Gage began in 1958 as a woodworking shop and shortly afterward began thermoforming operations. The packaging and thermoforming businesses employed 150, Hart said.
During a 2003 lobbying trip to Washington, D.C., Jeff Gage said his company's employment had fallen from 400 in 2000 to about 260 and said the high cost of providing employee health care was adversely affecting the business.