DEERFIELD, ILL. (Aug. 15, 12:40 p.m. ET) — Protective packaging manufacturer Pregis Corp. has purchased foam extruder Inter-Pac Inc.
The acquisition will make Pregis the largest producer of polyethylene sheet foam in the
Inter-Pac, based in
Pregis would not disclose terms of the deal.
The acquisition will boost Pregis' capacity, better utilize the company's footprint, and get them closer to their East Coast customers, said Kevin Baudhuin, president and CEO, by phone.
“It's really people, equipment and location that made this a solid acquisition,” he said.
The acquisition supports Pregis' growth strategy; the company is focused on growing both its core business – foam, bubble and mailers – and its systems business, which includes air pillows and foam-in-place systems, he said.
Pregis has divested several non-core operating units over the last year.
Last year, Pregis sold Kobusch-Sengewald, its Germany-based specialized packaging business, to Sun Capital European Partners LLP for $160 million. The company also sold its paper packaging unit Hexacomb to Boise Inc. for $125 million.
In January, Pregis sold its
Pregis makes protective packaging for a variety of markets, including food, beverage, healthcare, medical devices, agricultural, e-commerce, retail, automotive, furniture, electronics, construction and military and aerospace.
Not including the
The company had an estimated $200 million in North American film and sheet sales in 2011, according to Plastics News' most recent survey of the industry.
Pregis' protective packaging business had approximately $500 million in sales, Baudhuin said.