Exopack buys two Bemis film plants for $81 million

(Spartanburg, SC), in a deal that it believes will satisfy a competitiveness requirement from the U.S. Dept. of Justice following its 2009 acquisition of Alcan Packaging Food Americas. Exopack, owned by private investment firm Sun Capital Partners, paid approximately $81 million in the deal, acquiring plants focused on multilayer polyolefin barrier films for retail natural cheese and shrink bags for fresh red meat.

In addition to the sites and their equipment, the agreement included the purchase of Bemis intellectual property. Kristine Pavletich, Bemis public relations specialist, told PlasticsToday that the company is still awaiting formal approval from the Department of Justice, but it believes the sale of these two former Alcan plants will satisfy the legal obligations laid down following its $1.2 billion acquisition of the one-time Rio Tinto unit. Pavletich estimated that the Wisconsin operation employed approximately 212, with around 33 employees at the plant outside Tulsa.

Chris Swalm, Exopack corporate marketing manager, told PlasticsToday that nearly three years removed from its last acquisitions in 2007, the company, and the industry, are looking to once again delve into the M&A market. "We look for the right opportunities and have always had a commitment to growth through acquisition," Swalm said. "[Exopack] hasn't done a lot of deals of late, but there are still a lot of opportunities for consolidation in the industry." In addition to building scale, the Bemis plants also offer new entrée into new sectors for Exopack. "[Meat and cheese] are two markets that we're not a very big player in right now," Swalm said.

In November 2007, Exopack acquired DuPont Liquid Packaging Systems performance films segment, including its the Sclairfilm and Dartek operations, as well as its Whitby, ON plant. In August 2007, the company purchased InteliCoat Technologies Electronic and Engineered Films (EEF) business unit. Since its inception in 1995, Sun Capital affiliates have invested in more than 225 companies worldwide.

Exopack's capabilities include film extrusion, printing, lamination, and conversion of flexible packaging, including an in-house coatings division. The company's products cover microwave packaging; printed collation shrink films; laminated fill-form-seal (FFS) materials; specialty bags and pouches; heavy duty shipping sacks; medical components; and optical and electronic films. Sun Capital Partners acquired Exopack in 2005, merging it with Cello-Foil Products Inc. and The Packaging Group. Not including the acquisition, Exopack has 10 plastic, six paper, and two coatings facilities spread throughout the U.S. and Canada.

Bemis also specializes in flexible packaging, with capabilities in polymer chemistry, film extrusion, coating and laminating, printing, and converting. Registering 2009 pro forma net sales of $4.8 billion, Bemis employs 20,000 people across 82 manufacturing facilities in 13 countries.