Blow molder Alpha Packaging Inc. has added capacity with its acquisition of Progressive Plastics Inc. of Cleveland. Terms of the deal were not disclosed.
The move broadens St. Louis-based Alpha's reach into growth markets and is the company's largest acquisition to date.
They've been a well-run company that has been somewhat regional in approach, and with our six production facilities in different parts of the [United States], it makes sense to help move that success and profitability across the nation, Dave Spence, Alpha's president and CEO, said in a Dec. 16 telephone interview.
Progressive will continue to make preforms in Cleveland; they then will be shipped to other Alpha plants for production of containers for a variety of end markets, he said.
We were at a point [in] our growth where we needed to expand our facilities, and the ownership wasn't willing to take all that on financially by ourselves, so we needed a partner, said Anthony Busa, Progressive's president and CEO. We're going to have much more financial and strategic power [because of the Alpha acquisition].
Alpha blow molds high density polyethylene and PET bottles and jars for the personal-care, pharmaceutical, nutritional-supplement, and niche food and beverage markets.
In addition, Alpha's Technigraph decorating division provides decorating services to leading personal-care brands.
The opportunity for cross-selling stock products into both companies' existing customers will provide some immediate sales opportunities and also help Alpha move toward our long-term growth objective, Dan Creston, Alpha's executive vice president of corporate development, said in a news release.
P&M Corporate Finance LLC of Southfield, Mich., served as financial adviser to Progressive. Irving Place Capital, a private equity firm in New York, acquired Alpha in September.
Alpha ranked No. 21 in Plastics News' most recent survey of North American blow molders, with sales of $136 million.
The company employs 550 at plants in St. Louis; Salt Lake City; Bethlehem, Pa.; Jacksonville, Fla.; Ypsilanti, Mich.; and Roosendaal, Netherlands. Technigraph operates out of a facility in Winona, Minn.
The Dutch factory operating as Alpha Packaging International BV was to take delivery of its eighth Aoki stretch blow molding machine in late December, and Alpha plans to install one or two more Aoki machines there in 2011, Spence said.
Progressive makes bottles for the household-chemicals, food-packaging, personal-care and auto-care markets. The company ranked No. 36 in Plastics News' recent blow molders survey, with annual sales of $42 million. It employs 260.