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February 27, 2018 01:00 AM

Pregis acquires Rex Performance Products

Jim Johnson
Staff Writer
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    Pregis LLC

    Updated — Pregis LLC is expanding its foam manufacturing capabilities through the acquisition of Rex Performance Products, a maker of engineered foam for packaging.

    Rex, based in Marysville, Mich., adds 100,000 square feet of manufacturing space, 150,000 square feet of warehouse space and 85 workers to Pregis.

    “Rex is a company we've been looking at for the past three or four years,” CEO Kevin Baudhuin said in an interview.”

    His company was attracted by Rex's people, technology and capacity. The deal continues recent growth by Pregis through acquisitions.

    “With the five acquisitions in four years, we're very acquisitive. Pregis is based on growth, frankly. And we almost doubled in size in the last four years,” Baudhuin said.

    Rex CEO Don Tate will join Pregis and lead the company's engineered foam operations. Pregis, which calls itself one of the largest foam producers in North America, did not disclose terms of the deal.

    Rex makes closed-cell polyethylene foam that the company says is used in various industrial packaging, bedding, medical, construction, case goods and consumer recreation applications. Products include laminated plank, thin foam, special density roll stock and specialty foams.

    “It's a market that has growth. I would put it as conservative growth. But it's one that we want to constantly come with new technology to our customer base. It's one that's not going to go away. It continues to grow. Engineered foam is the best product for a lot of packaging solutions,” Baudhuin said.

    In announcing the news, Baudhuin called Rex a “perfect fit” for Deerfield, Ill.-based Pregis.

    “We will now have five engineered foam manufacturing locations and a vast warehousing network across the continent to serve fabricators. The combined organization will offer customers an expanded portfolio of protective packaging solutions,” Baudhuin said in a separate statement.

    Rex was founded in 2011.

    Pregis makes protective packaging and surface protection products as well as equipment systems.

    “Why Rex? Their people and their technology. They do things very well and we can help customers across the country with certain technology,” the CEO said.

    “It's a new technology in an old industry. When you say engineered foam, as I said, it's been around for a long time,” he said. “But to get better quality product, better service, better consistency, more regrind, they will enhance our portfolio.”

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