Sigma Plastics Group has acquired a majority stake in McNeely Plastic Products Inc., a maker of blown film, laminations and bags in Clinton, Miss.
Sigma, the big film and sheet extrusion company based in Lyndhurst, N.J., announced the deal Jan. 6. Terms were not disclosed.
Sigma Chairman Alfred Teo said the acquisition continues his company's moves to consolidate the flexible packaging industry. Sigma Plastics made three purchases last year: ISO Poly Films Inc., FlexSol Packaging Corp. and Santa Fe Extruders Inc.
“The industry really needs some consolidation, and I think there are going to be more,” Teo said.
McNeely will become a majority-owned subsidiary of Sigma Plastics Group. Current management will remain in place and retain an ownership stake.
Teo said the group includes President Greg McNeely and executives Shannon Watts, Wayne Davis and Dave Clarke.
The Mississippi company formed in 2005 after the merger of film extruder Mega Plastics Inc. and distributor McNeely Plastic Products. The two companies essentially shared ownership, but operated independently. The four men are the ownership group.
Teo called McNeely Plastic “a well-established, reputable company that complements our industry film strategy.” He said Sigma will invest in the company.
Greg McNeely said being part of Sigma gives his company an “array of resources and growth opportunities” that had not been available before.
Teo said McNeely Plastic generated 2009 sales of about $35 million. The plant runs seven blown film lines — five monolayer lines and two to make coextruded film. The business employs about 90.
McNeely Plastic has a diversified product range, including converter films, barrier food packaging, roll stock, industrial liners, wicketed bags and reclosable bags. The company does printing, bag making and lamination.
Teo said he thinks 2010 will be another year of consolidation for the flexible packaging industry. He cited some giant deals: Berry Plastics Corp.'s purchase of Pliant Corp. out of bankruptcy, AEP Industry Inc.'s acquisition of Atlantis Plastics Inc.'s custom and stretch films divisions, and Bemis Co. Inc.'s pending pickup of Alcan Packaging Food Americas.
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