Appleton considers selling C&H printing and converting unit

Flexible packaging and carbonless, thermal, and security paper supplier Appleton (Appleton, WI) is weighing the sale of its printing and converting C&H Packaging Co. (Merrill, WI) business. Bill Van Den Brandt, Appleton’s manager corporate communications, told MPW that C&H Packaging is the only film printing and converting facility Appleton owns, with the sale intended to focus the company’s remaining packaging division entirely on film production. C&H, which Appleton acquired in April 2003, operates a 127,0000 ft² plant, with 20,000ft² of office space, and employs roughly 100 people. The business prints and converts flexible plastic packaging for the food processing, household, and industrial products industries. If the unit was sold, Appleton’s film business would consist of film-producing businesses American Plastics (Rhinelander, WI) and New England Extrusion (Turners Falls, MA; Milton, WI).

Van Den Brandt was reluctant to comment on the current mergers & acquisition market, but did say Appleton is hopeful about a potential sale. “It’s difficult for [Appleton] to offer an opinion about the M&A market for packaging companies,” Van Den Brandt said. “C&H has many strengths and we are optimistic that we will sell [the business].” In a release, Appleton said it will provide no additional public comment about the progress or developments of the sale process unless its board of directors enters into a definitive agreement with a buyer.

In November 2004, Appleton added a flexographic six-color separation process that allowed it to produce more than 40,000 special colors for print graphics. At present, Van Den Brandt says Appleton’s capabilities include eight-color flexographic printing, adhesive lamination, slitting, and pouching. The company uses water-based inks and adhesives, and, along with plate-making and mounting operations, it has three presses, two laminators, four slitters, and two pouch machines. Appleton formed its performance packaging group through the April 2003 acquisitions of American Plastics and C&H.

Plastics industry mergers and acquisitions (M&A) worldwide were only off 2% on a year-over-year basis for the first six months of 2009, with 244 deals consummated. Financial advisory firm Blaige & Co. (Chicago, IL) believes that 2009 activity could surpass 2008’s 447 deals. —[email protected]