MADISON, WIS. (Updated Nov. 2, 4:10 p.m. ET) — Placon Corp. of
Placon officials said the combination will make the company one of the three largest medical thermoformers in the
Placon CEO Dan Mohs confirmed Tuesday that the acquisition was made official at midnight after several months of talks betweens officials at Placon and Welch Packaging Group, of which Barger was an affiliate. He said Placon started exploring purchasing Barger more than a year ago.
Mohs would not share any price or other details of the acquisition. He also did not want to project what the company's thermoforming sales would be for 2011 as a result of the purchase, but said Placon's gross sales — which include Placon's three key markets of food, retail and medical packaging — should be in the range of $130 million.
Welch, created in 1985, is also based in
Founded in 1887, Barger began developing medical packaging 40 years ago and has 67 employees at its
The company specializes in medical and pharmaceutical manufacturer of sterile and non-sterile packaging.
“Barger does an excellent job of serving its customer base,” Mohs said. “They are good at the mid-to-small level and we are good at the large, and we felt that with the combination of customers, that we can expand our sales of products, and that it would make an excellent complement to what Placon already does.”
Scott Duehmig, Barger general manager, said the company has been affiliated with Welch since 1996. He said Welch officials recently informed Barger employees of the upcoming sale to Placon and said the acquisition will benefit its employees and customers.
“We will now have the resources and support of a company in the [thermoform] line,” he said. “The customers will be the No. 1 benefactor as Barger has been under the realm of a corrugated company and ... being in line with thermoformers will be something new for our customers.”
Placon, founded in 1966 and a leader in packaging design and technology, earlier this year opened a $14 million PET recycling plant in
Mohs said the acquisition of Barger is part of Placon's long-term, strategic plan to be aggressive and deliberate.
According to Plastics News' most recent ranking, Placon had 2010 thermoforming sales of $95 million, making it the 21st largest company in the sector. Barger had thermoforming sales of $14 million.
Placon employs 400 at plants in
The company plans to keep the Barger name, maintain all employees and combine the sales teams in
“The customers, Barger employees and the community of
P&M Corporate Finance served as financial adviser to Placon.