Appleton sells Perfomance Packaging to NEX Performance Films for $58 millionAppleton sells Perfomance Packaging to NEX Performance Films for $58 million

's Performance Packaging operations for $58 million, as Appleton looks to exit plastics after only five years and shift focus to its core specialty paper and Encapsys microencapsulation businesses. The operations included in the sale extrude single and multilayer polyethylene films and are comprised of two wholly owned subsidiaries: American Plastics Company Inc. (Rhinelander, WI) and New England Extrusion Inc., which has facilities in Turners Falls, MA, and Milton, WI.

Appleton simultaneously acquired American Plastics and C&H Packaging in April 2003, later acquiring New England Extrusion in January 2005. That same year, Appleton reorganized its business into three divisions: technical paper, flexible packaging, and international. C&H Packaging (Merrill, WI), which prints and converts flexible plastic packaging materials for companies in the food processing, household, and industrial products industries, was sold to The Interflex Group in December 2009. The companies expect the transaction to be completed in July, and Appleton has said intends to use monies generated by the sale to reduce debt and for general corporate purposes. Appleton will now focus on carbonless papers, thermal papers, and its Encapsys technology of microencapsulation through physical and chemical means.

New company, private-equity backing
NEX is described as a newly formed company owned by Milwaukee-based private equity firm, Mason Wells. Other plastic packaging firms currently listed in Mason Wells' portfolio include flexible packaging business Coating Excellence International LLC (Wrightstown, WI) and medical- and food-packaging business Oliver Products Company (Grand Rapids, MI). Previous plastic-packaging portfolio companies of Mason Wells include thermoformer Creative Forming Inc. (Ripon, WI); flexible-film firm Duralam Inc. (Appleton, WI); corroguated plastic-container maker Great Lakes Packaging Corp. (Germantown, WI); and film extruder Tekra Corp. (New Berlin, WI).