Packaging converter Prolamina Corp. will acquire some assets and a book of business from Packaging Dynamics Corp. of Kaukauna, Wis.
Terms were undisclosed. The deal is expected to close in the third quarter, according to an Aug. 2 news release from Lake Forest, Ill.-based Prolamina.
The purchase includes Packaging Dynamics' extrusion laminating, 10-color printing and converting business in Kaukauna. Equipment will be moved to Prolamina's new, 250,000-square-foot packaging plant in Neenah, Wis.
“We are a specialist at this type of manufacturing and we will become even better,” Harold Bevis, Prolamina's chairman and CEO, said in the release. “As a result of these changes, we will now have a great footprint in the Midwest for high-end flexible packaging production.”
In addition to the new equipment, Prolamina has ordered a wide-format, solvent-based press from F&K with GPS electronics for quick changeovers for the Neenah plant. It is expected to be delivered in January. According to the release, the company has completed installation of its Black Clawson extrusion laminator at the site.
The Neenah facility is to begin production Aug. 18. The release said some members of Packaging Dynamics' management team will join Prolamina, but it did not provide specifics.
Company officials have said the facility will back up Prolamina plants in Westfield, Mass., and greater Montreal, manufacturing packaging for tobacco products, cheese, produce, snack foods, non-fluid-contact medical products, pet food and pouches.
Prolamina recently modified equipment at the former Jen-Coat plant in Westfield to make tobacco packaging. Prolamina's plant in Terrebonne, Quebec — formerly Excel Pac — recently received a superior rating from food-safety inspection and audit group AIB International, the release said.
Prolamina's manufacturing footprint includes three plants, 12 laminators, 13 printing presses, two graphic-design centers, in-house metalization, and converting equipment including laser scoring and perforating, and pre-formed pouch making, said Chief Operating Officer Tim French.
The firm recently received several awards from the Toronto-based Packaging Association of Canada, including a best-in-show for a spouted stand-up pouch for Yoplait yogurt.
Bevis formed Prolamina, originally called Packaging Solutions Holdings Inc., in his Illinois home a week after Berry Plastics Corp. of Evansville, Ind., bought Pliant out of bankruptcy in late 2009.
The company partnered last summer with private equity firm Wellspring Capital Management LLC of New York, acquiring extrusion laminator and printer Jen-Coat of Westfield in August 2010 and Montreal-based adhesive laminator, pouch maker and printer Excel Pac in March 2011.
Prolamina will source paper for its Neenah laminating operations from Packaging Dynamics' Thilmany Papers business, Bevis said in the release.