Both companies are both family owned. They are both lead by their second generations. And they share similar values, including the concept of putting the customer first.
But Placon Corp.'s acquisition of Plastic Packaging Corp. of West Springfield, Mass., does bring together two businesses that are certainly different in one key respect.
Placon makes thermoformed packaging, and Plastic Packaging Corp. makes injection molded products.
This is a deal that allows Madison, Wis.-based Placon to expand its offerings as part of what the company calls a strategic plan to increase its “breadth and depth of capabilities across multiple foodservice market segments.”
Plastic Packaging makes injected molded polyethylene and polypropylene containers, cups, tubs, pails and lids.
Acquisitions are part of a “multi-faceted growth strategy” for Placon that also includes organic growth, CEO Dan Mohs said.
“PPC marketed the deal and Placon was in the middle of an acquisition initiative and the timing, just coincidentally, worked out very well for the both of us,” Mohs said.
“If you look at their products and ours, we're one of the larger deli producers in our foodservice product line and their injection molded product line actually complements what we do very nicely,” the CEO said.
Mohs said that he found, during his due diligence with customers, that both companies' products were being used by shared customers.