"We are looking to grow our consumer packaging business both organically and through synergistic acquisitions," said John Baumann, chief executive officer and president, Ampac Packaging.
"We believe that Flexicon is an ideal strategic acquisition and will be an important cornerstone in helping Ampac achieve its long-term consumer packaging growth goals."
Flexicon provides Ampac with a strong position in the healthcare sector to complement its existing focus on consumer, retail and security packaging. The pharma packaging sector is expected to grow at a rate of 4.3 per cent a year to reach $22.2 billion (€17.2bn) in 2007, according to recent market research. The pharmaceutical and medical sectors currently account for around two thirds of Flexicon's business, and this proportion is expected to rise in the future.
Last July, Ampac announced it had acquired a controlling interest of Kapak, which specialises in a wide variety of flexible packaging structures, including preformed pouches, custom shapes, rollstock, spout fitments, resealing options and state-of-the-art rotogravure graphics. And in October, the company closed on the purchase of Longview Fibre's bag business
Flexicon is best known for its technologically advanced, custom-engineered structures, including adhesive laminations, Flexi-Free solventless laminations, heat-seal coated rollstock, pouches, perforated tear products and 10-colour, high resolution, flexographic printing.
The acquisition is therefore seen by Ampac as a good opportunity to further cement the corporation's growing dominance in certain sectors of the film and converting business, and to gain acces to new product lines such as flexible packaging products that seal through grease, resist chemicals; form oxygen and moisture barriers to specific chemicals, and seal/peel tovarious traystocks.
"Flexicon's expertise in laminations and its new flexographic printing capability will enable Ampac to deliver an even wider range of products and services to the markets we serve," said George Thomas, vice president of business development for Ampac and chief operating officer, Kapak.
Ampac said Flexicon's President Robert Biddle will continue to lead the company's 60-plus person work force in Illinois, while CEO Greg Baron will leave the company to pursue other interests.