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Alpha Packaging acquires Progressive Plastics in blowmolding buyout

Article-Alpha Packaging acquires Progressive Plastics in blowmolding buyout

Blowmolded packaging manufacturer Alpha Packaging has acquired Progressive Plastics, exploiting newly gained private equity backing from Irving Place Capital, which purchased Alpha in September. Alpha Packaging's acquisition of Progressive Plastics also builds on its own recent addition of two-stage polyethylene terepthalate (PET) injection stretch blowmolding.

Alpha Packaging blowmolds high-density polyethylene (HDPE) and PET bottles and jars for the personal care, pharmaceutical, nutritional supplement, and niche food and beverage markets. Alpha says the purchase of Progressive Plastics will add 160 stock items to its portfolio.

Progressive Plastics processes PET, HDPE, polypropylene (PP), and polyvinyl chloride (PVC) via extrusion, injection, single-stage injection stretch, and two-stage stretch blowmolding. Progressive Plastics also has in-house injection molding of PET preforms, injection the bottle precursors in sizes ranging from 19.5-83.5g for containers sized from 8-65 oz.

Progressive's Cleveland plant will begin operating as a branch of Alpha effective immediately and continue to be run by Progressive executives. Dairy and pharmaceutical certified, the plant employs 225 and is in full compliance with FDA, ISO 9001, GMP, HACCP, and OHSA requirements. Progressive also provides silk-screen printing, pressure-sensitive labels, heat-shrink labeling, and pad printing.

Alpha has more than quadrupled in size over the past 10 years in terms of annual revenues through acquisitions and organic growth. From 2005 to 2010, Alpha Packaging grew from $54 million in revenue and two locations to $136 million in revenue and seven plants.

Alpha's current manufacturing footprint includes its 210,000-ft2 headquarters in St. Louis; an 80,000-ft2 plant in Salt Lake City that opened in 2004; a 93,000-ft2 plant in Bethlehem, PA (former Yorkbridge Packaging Northeast acquired in 2005); a 120,000-ft2 plant in Jacksonville, FL, which was built in 2007; and a 100,000-ft2 plant in Ypsilanti, MI (former Quality Packaging purchased in 2007).

Irving Place Capital, which acquired Alpha Packaging in September, was formed in 1997 and has invested in more than 50 companies, raising better then $4.0 billion of equity capital, including its current $2.7 billion institutional fund. —PTStaff

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