C-P Flexible Packaging Inc. is entering what the company describes as "high-growth meal solutions markets" with the acquisition of Sycamore Sales Inc., which is known in the market as Preferred Packaging.
Preferred Packaging makes multilayer films and thermoformed containers. The Norcross, Ga.-based company also supplies tray sealing equipment for meal companies and schools.
"The addition of Preferred Packaging to the C-P portfolio significantly strengthens our capabilities to serve the processed food market while continuing to expand our geographical footprint and adding new market offerings to our diverse mix of products," First Atlantic Capital Chairman Roberto Buaron said in a statement.
First Atlantic, a private equity firm based in New York, owns York, Pa.-based C-P.
"We saw during the pandemic a significant increase in demand for centrally processed meal solutions to help address food safety concerns and believe this trend will continue," C-P CEO Mike Hoffman said in a statement. "Additionally, our perimeter-of-the-store growth strategy will be enhanced with Preferred Packaging's capabilities and exclusive technologies."
In recent years, packaging companies have experienced significant growth for goods located around the perimeter of grocery stores where higher-margin and higher-priced goods such as fresh food and organics are often displayed. The relatively higher prices of these products allow for more investment in packaging that helps drive sales.
C-P said the deal provides the company "with significant expertise in refrigerated and frozen prepared meal packaging systems including barrier and breathable flexible roll stock and sealing equipment, as well as expanded geographic reach in the Southeast United States."
Preferred Packaging's capabilities include flexographic laminating, slitting, perforating and thermoforming, C-P said. Key markets are prepared meals, produce and meats, and products are distributed nationally.
C-P could not be immediately reached for further comment.
C-P was created in 1958 to make packaging for the founders' potato chip business. Packaging soon became the primary focus. C-P has grown over the years to now include 10 manufacturing sites and more than 1,000 employees in North America.
The acquisition of Preferred Packaging continues a significant acquisition period for C-P. It was only in late August that the company revealed the purchase of affiliated companies Fruth Custom Packaging Inc. and Cleanroom Film and Bag Inc. of Placentia, Calif. Earlier that same month, C-P announced purchase of Prestige-Pack Inc. of Fond du Lac, Wis.
At the time of the California purchase, Buaron talked about C-P's goal of creating a coast-to-coast flexible packaging organization with a broad product portfolio.