Consolidated Container Co. has made its first acquisition since being sold last month to private equity firm Bain Capital Partners LLC.
Consolidated Container, an Atlanta-based blow molder, announced Aug. 14 it has purchased most of the assets of Moorhead, Minn.-based Roffe Container Inc. Terms were not disclosed.
CCC also announced it will sign a lease for a manufacturing site and will begin the installation and build-out of a multiline production plant in Lakeville, Minn., near Minneapolis.
The two moves will give CCC two plants in the Upper Great Lakes and Northern Great Plains regions.
CCC Chief Financial Officer Richard Sehring said the new plants will put CCC in new geographic areas and closer to dairy and industrial customers, a market it hasn't been strong in because of freight restrictions. The firm is continuing to look for opportunities for growth, both organically and through acquisitions.
Tom Janas, owner and president of Roffe Container, said in the same release: “The timing of this transaction and CCC's commitment to growing in the region aligned perfectly with our objectives. This is an exciting outcome for the employees and customers of Roffe Container.”
Roffe Container had 2011 North American blow molding sales of $5 million, according to Plastics News' data. It has 23 employees and nine machines, and makes polyethylene beverage containers for milk, water and juice.
The deal is scheduled to close in the coming weeks, and CCC expects to complete the initial build-out of the Lakeville plant by mid-2013.
Bain Capital closed on the purchase of CCC on July 3. That deal was valued at $800 million.
Bain bought the blow molder from Vestar Capital Partners and other investors.
Not counting the two additional plants in Minnesota, CCC has 59 plants in North America and 2,100 employees. The company specializes in mid- and short-run packaging, serving a diverse customer base in dairy, water, beverage, food, household chemical, automotive and industrial chemical markets.
Consolidated Container was one of the big packaging container mergers in the 1990s. Vestar Capital Partners, a New York private equity firm, bought Reid Plastics Inc., then acquired a majority stake in the packaging group of Suiza Foods Corp. in 1999 — a blockbuster deal that created the giant new blow molding conglomerate, Consolidated Container.
According to the most recent Plastics News ranking, Consolidated Container is the fifth-largest blow molder in North America, with sales of $737 million.