Rohrer buys Transparent Container, adding thermoforming capacity

Updated Oct. 3: Rohrer Corp. is dramatically expanding its plastics thermoformed packaging operations through the acquisition of Transparent Container Co. Inc.

It's a deal that adds six manufacturing locations and evens out Rohrer's business between plastic and paper packaging, CEO Steve Wirrig said in an Oct. 3 interview with Plastics News.

Rohrer, which started as a printing company, previously had about 20 percent of its business in plastics with the rest in paper. Now the mix is about 50/50, he said.

“It was always a minority subset of the business. We've been looking hard at different plastics acquisitions to get a better balance in our business between plastic and print. When you look at the competitive set we have in the market, Transparent was No. 1. We ran into them all the time,” Wirrig said.

By combining the assets, the CEO sees an opportunity to grow each portion of the business.

“From an organic standpoint, with the new combination we have a lot of customers, large and small, that we deal with that we were only supplying print or plastic to. We think we've got a lot of great opportunities to add additional value to customers by cross selling one or the other,” he said.

“The key thing it gives us is this additional mass to really go in and really be more creative and innovative in the marketplace,” he said.

Rohrer will have annual sales of about $200 million now, with about half of that coming from plastics.

Transparent Container lists a variety of packaging offerings on its website, including blister, folding cartons, clamshell, displays, stock and hybrid.

That company dates to 1961 when Byron “Bud” Fisher and Ken Barmore purchased half of the assets of Weinman Bros. Inc., a maker of round acetate containers and metal cans. The partners automated production and began operations in Chicago, according to the company's website.

The announcement of the purchase by Rohrer was dated Oct. 1, a significant date in Transparent Container's history.

Thermoforming began in 1973, and Dan Greiwe was promoted to president and became a partner in the business the same year. Greiwe became sole owner on Oct. 1, 1999. His son Scott Greiwe, became a partner in the business five years later on Oct. 1, 2009. Exactly three years after that, the company that had grown over the years expanded production further to at new thermoforming facility in Ontario, Calif.

Both Dan Greiwe and Scott Greiwe will remain with the combined Rohrer, which now will have more than 1,000 employees. That includes more than 400 from Transparent Container.

Transparent Container was the 35th largest thermoformer in North America, according to a list published by Plastics News earlier this year. Rohrer was No. 37 in the ranking.

Transparent Container lists two addresses in Addison as well as one each in Bensenville, Ill., Conyers, Ga., Ontario, Calif., and Obregon, Mexico, on its website.

Rohrer, along with its headquarters in Wadsworth, Ohio, also lists locations in Solon, Ohio; Buford, Ga.; Mesa, Ariz., and Huntley, Ill.

A recent blog on Transparent Container's website indicates the company will soon open an 87,750-square-foot location in Tijuana, Mexico. That site, will replace the Ontario, Calif., location, and be one of the company's largest facilities, with 11 thermoforming lines.

“Several of our key partners have moved their manufacturing facilities to Tijuana and Mexicali in the past few years. When we saw the general trend in that area, we determined the best way to serve businesses in Mexico is by building a new manufacturing facility,” said Steve Fifer, vice president of operations, in the blog.

The company will double its manufacturing space in region by replacing the Ontario location with the Tijuana site, the blog states.

Rohrer is owned by ShoreView Industries, an investment firm based in Minneapolis.

And ShoreView is looking to continue to grow the business.

“We still believe there is a lot of potential for consolidation,” Wirrig said. “We've been on a path to find acquisitions that fit. We're very, very careful to find ones that are strategic to us.

“We take great care with the acquisitions. We're not a company ... who simply wants to squeeze costs in six months and reflip the business. We're in this for the long term. We have no plans to sell Rohrer Corp. this point. We're still really in the build mode,” the CEO said.

“The key thing it gives us is this additional mass to really go in and really be more creative and innovative in the marketplace,” Wirrig said.

P&M Corporate Finance (PMCF), led by John Hart, served as financial adviser to Transparent Container.