Packaging merger creates new company
MARIETTA, GA. — Graphic Packaging Holding Co. has combined its multiwall bag and specialty plastics packaging unit with Delta Natural Kraft LLC and Mid-America Packaging LLC to form a new company.
Marietta-based Graphic Packaging will own 87 percent of the new firm, officials said in a Dec. 9 news release. The combined business will have annual sales of about $150 million.
The remainder of the new firm will be owned by Capital Five Investments LLC, a Twinsburg, Ohio-based investor that already owns Delta Natural Kraft of Pine Bluff, Ark., and Mid-America Packaging of Twinsburg.
“The combination will allow us to better serve our customers through the expanded operations … and position us well for a rebound of the end markets served by these products,” Graphic Packaging President and CEO David Scheible said in the release.
Publicly held Graphic Packaging posted sales of almost $3.2 billion in the first nine months of 2011 and profit of about $11 million after losing almost $9 million in the year-ago period.
Infiltrator buys ADS septic chamber biz
OLD SAYBROOK, CONN. — Infiltrator Systems Inc. will buy the septic chamber business of Advanced Drainage Systems Inc.
The chambers are made by injection molding, said Jim Bransfield, marketing manager of Infiltrator, based in Old Saybrook. He said ADS molds the chambers, but declined to give details on moving production. Financial terms were not released.
Infiltrator already makes rotational molded septic tanks at its factory in Winchester, Ky.
As part of the acquisition, ADS, a Hilliard, Ohio-based pipe maker, has entered into a long-term non-exclusive distribution agreement with Infiltrator Systems, and ADS will continue to market and sell the Arc and BioDiffuser product lines.
Infiltrator, which is owned by Philadelphia-based investment firm Graham Partners Inc., bought the corrugated pipe division of Blue Diamond Industries LLC in 2010.
Milacron expansion gets Ohio tax credit
CINCINNATI — The Ohio Tax Credit Authority has awarded Milacron LLC a state tax credit for the plastics machinery maker's recent $1.5 million capital equipment investment expansion at its machining plant in Mount Orab, Ohio.
Milacron is buying three new pieces of metalworking equipment. The plant does machining for Milacron's plastics equipment assembly factory in nearby Batavia, Ohio, and also contract manufacturing for wind turbines.
The expansion is expected to add at least 35 jobs to the plant's 200-employee workforce. Milacron said the tax incentive is based on its ability to meet that goal over the next three years.
Mount Orab is in Brown County, which has a 10.2 percent unemployment rate, one of the highest in Ohio.
“Given the high unemployment rate in this region, tax incentives are increasingly important in helping companies like Milacron support our growth initiatives,” said John Francy, Milacron's chief financial officer. He said the Brown County Department of Development helped secure the tax credit.
Milacron, the only U.S.-owned, broad-line manufacturer of primary plastics equipment, employs more than 710 in Ohio.
Milacron announced the news in a Dec. 8 news release. The company did not provide details of the tax deal, but published reports said the state awarded Milacron a six-year, 45 percent state tax credit.
Rock-Tenn picks up plastics with GMI
NORCROSS, GA. — Packaging giant Rock-Tenn Co. has acquired GMI Group, a packaging processor and laminator, for an undisclosed price.
Plymouth, Ind.-based GMI operates six manufacturing sites across the U.S. under the names of GMI Inc., Glenmark Industries Inc., Foil Laminating Inc. and Varipak Inc. The firm makes a variety of products, including lids and clamshell packaging, as well as specialty film, foil and holographic laminations.
Most of Norcross-based Rock-Tenn's products are based on corrugated paperboard. Earlier this year, the firm paid $3.5 billion to acquire corrugated packaging maker Smurfit-Stone Container Corp.
Rock-Tenn's sales grew 80 percent to $5.4 billion in its 2011 fiscal year ended Sept. 30. But the firm's profit tumbled almost 40 percent to $146 million.
Deloitte Corporate Finance LLC assisted GMI in the deal.