Mid-America Bag LLC of Pleasant Prairie, Wis., has acquired the film division of its former owner, CPI Plastics Group Ltd., amid the Canadian profile and film extruder's bankruptcy.
CPI of Mississauga, Ontario, was placed into receivership Jan. 8 following a petition by its main secured lender, Bank of Montreal. The next day, CPI's U.S. assets were protected from creditors under Chapter 15 of the U.S. Bankruptcy Code.
The Toronto office of Deloitte & Touche Inc. was appointed receiver and manager of the business. Will Frame, managing director of the paper, plastics and packaging practice at Deloitte Corporate Finance LLC in Chicago, announced the sale of CPI's Film Products Group in a Nov. 3 news release. The Chicago office advised in the sale.
Details of the deal were not released. Mid-America and CPI officials were unavailable for comment.
CPI lost C$3.4 million (US$3.2 million) in its fourth quarter, which violated loan covenants with Bank of Montreal. When it filed for bankruptcy, CPI had liabilities of C$54.4 million (US$51 million), of which the bank held 62 percent. U.S. creditors were owed less than 10 percent of the liabilities.
According to Mid-America's Web site, the firm markets the Rack Sack line a bag/dispenser system in both the U.S. and Canada. Mid-America manufactures products for a number of the world's largest retailers under its Maximum and Optimum brands, in addition to private-label store brands. The firm also sells Street Side no-frills industrial garbage bags, and Ultimate Liner trash can liners for the janitorial market.
According to Plastics News' most recent film and sheet makers ranking, Mid-America employs 100 and extrudes polyethylene film for food packaging and trash bags. Its film and sheet sales in 2008 were US$30 million out of total corporate sales of US$112.3 million.
CPI employs 600 at five facilities and runs more than 135 extrusion lines. In addition to the film division, it operates Outdoor Living Products Group which makes Eon-brand decking and fencing and Custom Products Group, which extrudes custom profiles for industries including appliances and automotive.
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