Inteplast Group Ltd. has acquired Illinois Tool Works Inc.'s Minigrip resealable bag business, said an ITW spokeswoman.
Terms of the deal were not immediately available.
Minigrip, based in Kennesaw, Ga., manufactures bags for both consumer and commercial customers, including the medical, industrial and institutional food-service markets.
In a presentation accompanying a July 24 investor conference call to discuss its second-quarter results, ITW said it had divested a “non-core consumer packaging business” earlier that month. That business had been for sale since June 30, 2011, according to Securities and Exchange Commission filings.
ITW also plans to divest another consumer packaging business in the third quarter of 2012, according to the presentation.
According to industry insiders, the acquisition will have a major impact on the plastics packaging industry. It puts Inteplast in a position to enter the private label market — an arena where Minigrip has major existing customers and one that Inteplast has struggled to break in to.
The deal also gives Inteplast a stronger presence in the medical market, an insider said. Both Inteplast's Integrated Bagging Systems business and Minigrip manufacture specimen and transport bags.
“Fast forward a year from now and it's going to be a very different marketplace because of this acquisition,” said the source, who asked not to be identified.
Inteplast, based in Livingston, N.J., operates three divisions: plastic bag manufacturer Integrated Bagging System; AmTopp, known for its wraps, biaxially oriented polypropylene films, and plastic compounds, concentrates and additives; and World Pak, which manufactures sheets of corrugated plastic and solid and expanded PVC, heavy-duty film and bags, and synthetic wood.
In recent years, Inteplast has been on an acquisition streak, completing more than five film- and bag-related purchases since 2010.
It operates 21 plants and 10 warehouses, and is North America's sixth-largest film and sheet maker with 2011 sales of $1 billion, according to a related Plastics News ranking.
ITW, based in Glenview, Ill., owns business in a range of industries, from equipment manufacturing to consumables. It posted companywide sales of $17.8 billion in 2011.
Last month, it sold its SpaceBag brand, known for its vacuum-seal storage bags, and related assets to S.C. Johnson & Son Inc. Minigrip manufactured a commercial-grade version of the SpaceBag.
ITW sold its liquid finishing business to Graco Inc. for $650 million in a deal that closed in March, after Graco struck an agreement with the Federal Trade Commission.
ITW also sold an electronic components business and a flooring business in 2011, and plans to divest another consumer packaging business in the third quarter of 2012, according to SEC filings.
ITW would not comment on the sale. Inteplast did not return calls seeking comment Aug. 2.