Film and bag producer Polyethics Industries Inc. expects to get its oxo-biodegradable trash bags to retail markets faster through a merger.
The Orillia, Ontario, firm has agreed to merge with Jig-A-World Inc., a Montreal-based producer of do-it-yourself lubricants and patching compounds. Terms of the agreement announced Nov. 24 were not disclosed.
``By joining our company with Jig-A-World, Polyethics Industries taps into a huge retail market that has been unattainable to this point,'' said Polyethics President Derek Rynard. Polyethics has been selling its oxo-biodegradable bags mainly to industrial clients.
The deal comes amid an expansion under way at Polyethics. The firm recently bought a second facility in Orillia and is expanding its original building. The expansion should boost employment from 65 to more than 100 people early next year. Floor space will grow to 135,000 square feet from the previous 50,000 square feet.
Polyethics relies on recycled polyethylene to make all its bags. That's been its strategy since it was founded in 1991. Rynard bought the company in 2002.
``We plan to invest in production facilities,'' said Jig-A-World President and Chief Executive Officer David Gilmour. He declined to provide more specific information in a telephone interview.
``We were looking for an environmental bag, but we didn't want a marketing stunt,'' Gilmour said. The two companies came to an agreement shortly after Polyethics showed Jig-A-World executives its product line.
Jig-A-World was founded in 2006 and came onto the retail scene with Jig-A-Loo, an invisible lubricant and waterproofer developed long before Jig-A-World acquired it. Jig-A-World later added Jig-A-Patch, a spray-on spackle to repair walls before painting them. The products are sold in 20,000 retail outlets across Canada and the United States.
Gilmour said Jig-A-World is now opening up sales channels in Europe that also will handle Polyethics' trash bags.
Polyethics' bags will be sold under the EconoVert and EconoGreen trade names. A key selling point, according to the company, is that the bags will provide the same quality as regular trash bags but with no markup in price.