Molded paper fiber company CKF Inc. is acquiring Packright Manufacturing Ltd., a maker of recycled PET thermoforms and expanded polystyrene foam packaging in Langley, British Columbia.
Both CKF and Packright operate in similar markets allowing the combined firm to benefit from "scale, design and market access," CKF said in announcing the deal Nov. 1.
"Not only are we gaining a tremendous depth of knowledge in [recycled PET] design and manufacturing, but the acquisition aligns with our vision and investment strategy to build the scale and standardization required for a sustainable, circular economy for rPET," CKF President Ian Anderson said in a statement.
CKF's molded paper fiber business includes the Royal Chinet brand.
The deal will benefit both sides as they come together, the company said.
"Packright will gain access to CKF's capital strength, its manufacturing expertise and capacity; while CKF will benefit from Packright's design prowess, its market reputation for quality products and its established and loyal customer base," CKF said.
Packright started in 2003 as a family-owned company making clear and colored recycled PET products for agricultural, produce, confectionery and deli uses.
CKF now has five manufacturing plants in Canada and two in the United States with the Packright acquisition. The company started out as Canadian Keyes Fibre Co. in 1933 making pie plates and cake circles for bakeries.
CKF is owned by Scotia Investments Ltd., which also owns Scotia Recycling Ltd., a recycler that collects and sorts plastics and paper in Atlantic Canada.
Blaige & Co. of Chicago advised the seller during the transaction.