A packaging company that can trace its lineage back more than 200 years to one of the most famous Revolutionary War figures is expanding.
Revere Packaging LLC, based in Shelbyville, Ky., is buying Plastic Package Inc. of Sacramento, Calif.
The deal pushes Revere Packaging deeper into plastics while also expanding the company's geographic footprint.
Revere Packaging, before the acquisition, had about 15 percent of its $18 million in annual sales come from plastics, which have been a complementary business to the company's aluminum foil container operations.
But plastics will now represent a majority of the company's $40 million in annual sales thanks to the $22 million in plastics-related sales from Plastic Package.
"The aluminum foil container market is pretty mature," Revere Packaging CEO David Watts said, with annual volume growth of about 1 to 2 percent annually. "Plastic food containers is growing at a much faster rate and we think has a much better long-term trajectory than aluminum. So we thought it was important to diversify towards a better growth segment of the food packaging business."
Revere's existing plastics business chiefly consisted of lids sold in conjunction with the company's aluminum containers, although the firm did offer a limited number of stand-alone products, including clamshell containers and take-out bowls and lids.