Sigma Plastics Group has acquired a majority ownership in specialty film maker ISO Poly Films Inc. that will allow Sigma to emphasize business in the food-packaging industry and will provide ISO with funds to expand.
ISO Poly Films specializes in value-added products that fit nicely into Sigma's plans, said Sigma Chairman Alfred Teo in a Feb. 26 telephone interview. ISO's business lines extruding multilayer films and pouches for the food-packaging industry for produce, liquids and other products are a little more recession-proof than Sigma's, he said.
At the same time, Lyndhurst, N.J.-based Sigma is a financially strong company that can provide the funds needed for the 75-employee firm to grow, he added.
ISO will get additional three-layer film lines and one seven-layer line during the first and second quarters of this year.
Jon McClure, president and founder of ISO Poly Films, said in a news release he feels confident that aligning ISO with a larger company is a good move.
This partnership boosts our ability to get stronger and bigger at a time when other companies are contracting, McClure said.
Teo will serve as chairman of ISO Poly Films.
Sigma posted $1.5 billion in sales in 2007. It has 28 plants in North America and about 5,000 employees.
ISO Poly Films has a 135,000-square-foot facility and had $52 million in sales. It also has lamination and printable films and has additional business in the lawn and garden and flexible packaging industries. The firm previously invested $35 million to develop and expand its facility and manufacturing equipment.
Chicago-based Blaige & Co. advised ISO on the deal.