Sigma Plastics Group has purchased Santa Fe Extruders Inc., a blown film maker marking Sigma's third acquisition in 2009.
Sigma of Lyndhurst, N.J., bought Santa Fe Extruders of Santa Fe Springs, Calif., in what Sigma CEO Alfred Teo Sr. said was a structured asset sale with Santa Fe's secured creditors.
He would not give financial details of the deal, announced Sept. 18.
Teo said Sigma will continue to operate the factory in Santa Fe Springs, which has eight film lines and production capacity of more than 25 million pounds per year. The company does bag-making, converting and printing operations.
Santa Fe Extruders generated estimated sales of $18 million, according to the latest Plastics News ranking of film and sheet extruders.
Teo called the deal the latest move in a long-term strategy for the flexible packaging industry. The industry needs to consolidate, and I'm happy to do that, he said.
The newly formed business will be called Santa Fe Holding Corp. Teo will serve as CEO and president. Brick Pinckney, Santa Fe Extruders' president, will become vice president and chief operating officer of the new company. Teo's son, Andrew, will be its chief financial officer.
Pinckney said the acquisition is good news for his company.
Sigma has long been a leader in the flexible films industry and everybody here at Santa Fe looks forward to the challenge and opportunity of working within the group, he said.
Sigma bought majority stakes in two other companies this year: FlexSol Packaging Corp., based in Pompano Beach, Fla., and ISO Poly Films Inc. of Gray Court, S.C.
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