Prolamina Acquires Packaging Dynamics Business Unit

PRNewswire

LAKE FOREST — Prolamina Corporation said it will acquire a unit of Packaging Dynamics Corporation in Kaukauna, Wis. Financial terms of the transaction were not disclosed.

The acquisition will encompass Packaging Dynamics’ extrusion laminating, 10-color printing and converting business. The additional customers and equipment will support Prolamina’s focus on the food and medical packaging markets and its growing business.  In particular, it will allow Prolamina to quickly begin producing additional, unique products for its customers.  Key members of the operating management staff of the Packaging Dynamics unit will join the Prolamina team.

All of the acquired Packaging Dynamics equipment will be relocated into Prolamina’s new plant in Neenah, Wis., making the new plant one of the largest and lowest cost operations in the packaging industry.

“This acquisition is good for both Prolamina and Packaging Dynamics. We are a specialist at this type of manufacturing and we will become even better,” said Harold Bevis, founder, chairman and chief executive officer of Prolamina. “Likewise, Packaging Dynamics, through its Thilmany Papers business unit, is an expert at papermaking and we are entering into a supply agreement for a great source of quality papers.

“Prolamina will now become one of Packaging Dynamics’ largest customers. We are also upgrading the acquired machines to be state-of-the-art and then reinstalling them alongside our new machines. As a result of these changes, we will now have a great footprint in the Midwest for high-end flexible packaging production. In less than a year, Prolamina has created an innovative, low-cost competitive force in the industry for our targeted markets,” he added.

Chief Operating Officer Tim French said the company have a manufacturing footprint that includes three plants, 12 laminators, 13 printing presses, two graphics design centers, in-house metallization, and converting equipment that includes laser scoring/perforating and preformed pouch making.

“We have redundant production among the three operations and provide state-of-the-art supply certainty to our customers,” French said

Completion of the transaction is expected in the third quarter of 2011.