In mergers and acquisition news out of the United States this week, label converter and printer Cenveo acquired Gilbreth Packaging Solutions, a converter of full body shrink sleeves and other flexible packaging, in a deal on the East coast. On the shores of the Pacific, meanwhile, Rotonics Manufacturing Inc.'s plans to close its rotomolding facility in Gardena, CA were halted after it was able to sell the operation to Sherman McKinnis, the man who actually founded the company in 1973.
First, Cenveo (Stamford, CT) acquired Impaxx Inc., the sole owner of Gilbreth Packaging Solutions Inc. from affiliates of Aurora Capital Group, a Los Angeles private equity firm. Gilbreth employs about 75 at its facility in Croydon, Pennsylvania, where it uses multiple printing technologies as a full-service manufacturer and marketer of full body shrink sleeves, tamper evident neck bands and medical & electronic tubing. Gilbreth's 150+ customers operate in a wide variety of industries with an emphasis on the personal care, pharmaceutical, nutraceutical, energy drink and food and beverage markets. The terms of the transaction were not disclosed.
For Cenveo, the acquisition gives it a foothold in the shrink sleeve market. With about $2 billion/yr in revenue, Cenveo is the third-largest graphics communication company in North America. Its employs about 8000, with operation in commercial printing and packaging, envelope, form and label manufacturing, and publishing.
On the other Coast, Rotonics Manufacturing Inc. (Commerce City, CO) was continuing its consolidation efforts, which have reduced its rotomolding footprint from nine facilities to three, when it announced last month its intent to close its facility in Gardena, CA. Instead, talks ensued and have now been completed with the result that a final asset purchase agreement was signed between Rotonics and Rotational Molding, a California company formed by Sherman McKinnis. McKinnis and a partner had founded the Gardena company in 1973, and grew it to become a nationwide rotomolding business that eventually was called Rotonics.
"Subsequent to our close announcement we entered into discussions with Rotational Molding Inc., a California corporation headed by Sherman McKinnis," said Rotonics' CEO Richard Leary, in a company statement. "Those discussions have led to a final asset purchase agreement between Rotonics and Rotational Molding in which the assets of the Gardena plant will be transferred. This asset sale represents the best outcome for Rotonics' strategic restructuring, the majority of our California associates, and the business interests of Rotational Molding Inc." Mario Poma, who was GM there when Rotonics owned it, still is handling day-to-day operations at the Gardena plant.