Georgetown, Massachusetts -- Foam packaging specialist UFP Technologies Inc. has bought Packaging Alternatives Corp., a full service designer, converter, and distributor of foam plastic products, specialising in technical polyurethane foams, principally for the medical market.
Founded in 1977 and located in Costa Mesa, California, PAC's sales in 2011 were about $10 million.
"We are very excited about joining forces with a highly respected medical market specialist," said Jeffrey Bailly, chairman, ceo and president of UFP Technologies. "PAC brings us a profitable book of business, very strong medical customer relationships, a complementary product line, and a solid management team," he added, noting that company leaders Richard and Tim Tunila are joining UFP.
The deal will allow UFP to serve customers more efficiently, with a broader range of products, Bailly added.
"We are committed to expanding our medical business, with its excellent growth potential and high barriers to entry, and expect this acquisition to improve our coverage of the Western US, enhance our manufacturing capabilities, and add to our earnings," he continued.
Richard Tunila, PAC president said, "Joining forces with UFP expands our product lines and manufacturing capabilities," noting UFPT's diverse capabilities, strong reputation, and strategic plant locations, making it "a great fit for PAC."
According to Bailly, UFP remains committed to continued growth through strategic acquisitions. "We still have significant cash and credit resources on hand," said Bailly. "We will continue to search for companies that provide a good strategic and cultural fit, and improve our position in our target markets."
UFP Technologies makes innovative custom-engineered components, products, and speciality packaging, using foams, plastics, composites, and natural fibre materials. Products are primarily for the medical, automotive, aerospace & defencee, electronics, consumer, and industrial markets.
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