Acquisition should help earnings.
TORONTO, Aug 24, 2000 (BUSINESS WIRE) --
Expands Packaging Capacity in Rapidly Growing Southeastern
Region of United States
Polyair Inter Pack Inc. (AMEX:PPK)(TSE:PPK.), a leading manufacturer of protective packaging and swimming pool accessory products, today announced that it has signed a definitive agreement and acquired the assets of Accent Packaging Products from Century Products, Inc. of Malden, Massachusetts, through its Cantar/Polyair subsidiary. Accent, with locations in Malden, Massachusetts and Atlanta, Georgia, is a regional manufacturer of a specialized line of packaging products, including bubble mailers and bubble and reflective insulation.
Accent's revenue for its last fiscal year was in excess of $11 million. The company expects the acquisition to be immediately accretive to earnings.
Following the acquisition, Accent's Malden operations will be integrated into Polyair's Carlstadt, New Jersey facility. Polyair will also move its existing Atlanta packaging operations into Accent's Atlanta facility.
Henry Schnurbach, President and Chief Executive Officer of Polyair Inter Pack, commented, 'We are pleased to announce the acquisition of Century Products' Accent Packaging Products division. Accent will provide Polyair with a number of important synergies that should accelerate our growth strategy and will provide us with strategically located production in Atlanta, Georgia. The Company will be able to increase its packaging revenue with very little incremental cost, while also increasing production of its swimming pool accessory products without adding to current overhead. We also expect Accent's wide distribution to complement Polyair's existing sales base, therefore increasing Polyair's sales opportunities throughout the East Coast.'
Polyair Inter Pack Inc. (www.polyair.com and www.cantar.com), through its Polyair Division, manufactures protective packaging; through its Cantar Pool Division the Company manufactures swimming pool accessory products, which are sold through a network of some 2,100 distributors across North America. Polyair operates 11 manufacturing facilities, eight of which are based in the United States where the company generates approximately 86% of its annual sales. The shares are traded on the The American Stock Exchange and The Toronto Stock Exchange under the symbol 'PPK'.
Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company and the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Polyair Inter Pack Inc.
CONTACT: Investor Relations:
Cheryl Schneider/Hani Henein
Press: Greg Tiberend/Ellen Paz
Morgen-Walke Associates
212/850-56
or
John Foglietta
Chief Financial Officer
416/740-2687
jfoglietta@polyair.com |
