Sealed Air Corp. is buying AFP Inc., a maker of foam packaging.
Charlotte, N.C.-based Sealed Air said the Pflugerville, Texas-based company had $125 million in sales last year. The company also makes corrugated, molded pulp and wood packaging.
The latest deal, revealed by the company Aug. 2, follows the 2017 purchase of Fagerdala Singapore Pte. Ltd.
AFP uses polyethylene, polyurethane and expanded polystyrene to make its foam packaging. The company provides the design, development, testing and fabrication of manufacturing, warehousing and just-in-time delivery services.
"We see growth synergies with both the AFP acquisition and our recent Fagerdala acquisition that expands our fabricated design capabilities for the electronics, transportation and industrial markets," CEO Ted Doheny said on a conference call.
"AFP and Fagerdala align well with the ship-in-your-own container and SIOC trend in e-commerce," he said.
Sealed Air acquired PE foam maker Fagerdala in a $100 million deal last year. That move added 14 manufacturing plants in Asia and North America.
AFP has six manufacturing sites in the United States "with a further presence in Asia and Mexico," Sealed Air said.
While the company is moving deeper into custom engineered packaging, Sealed Air said it will continue to work with an established network of fabricator partners that remain integral to its strategy.
The company also was asked by a stock analyst about what impact the heightened awareness of single-use plastics is having on its business.
"We're definitely seeing the plastic issue right in front of our customers. We actually had two of our majors in last quarter discussing with us what we can do," Doheny said.
"Our customers are definitely quite interested as we bring in renewable materials," he said.
Plastics, Doheny said, have value because it provides critical uses in both protecting products and extending the shelf life of food, for example.
"It is definitely on the minds of our customers and we'll be continuing working to see what we can do to improve our sustainability efforts. Actually, the word we're using with our customers is to 'lead with them' in that process," he said.
Sealed Air also reported second quarterly profit of $114.4 million, or 71 cents per diluted share, on sales of $1.16 billion. That compares to profit of $104.1 million, or 52 cents per diluted share, on sales of $1.07 billion in last year's second quarter.
Sealed Air reduced its outstanding diluted share total by about $33 million between those quarters.