Appleton, Appleton, Wis., USA, this past week announced that it will sell its Performance Packaging operations to a newly formed company named NEX Performance Films Inc. which is owned by Mason Wells, a Milwaukee, Wis.-based private equity firm. The sale of the Performance Packaging operations is a strategic move to consolidate Appleton's offerings and to allow the company to focus on its core business. The purchase price is approximately $58 million. The companies expect the transaction to be completed this month.
Appleton's Performance Packaging operations produce high-quality single and multilayer polyethylene films and are comprised of two wholly-owned subsidiaries—American Plastics Co., located in Rhinelander, Wis.; and New England Extrusion Inc., which has facilities in Turners Falls, Mass., and Milton, Wis.
Appleton's CEO Mark Richards said the Performance Packaging operations no longer complement the company's long-term strategic direction, which is to focus on its specialty paper and Encapsys microencapsulation businesses. "Our core strengths in specialty paper production and microencapsulation have been the foundation of our company's success for more than a century, and they will be the focus of our growth strategy in the future," said Richards. He added that Appleton will leverage the operational strengths of the company and its recent capital investments in its thermal and Encapsys businesses to expand its market leadership positions in specialty paper and encapsulation.
Appleton simultaneously acquired American Plastics Co. and C&H Packaging Co. in April 2003. C&H Packaging, located in Merrill, Wis., prints and converts flexible plastic packaging materials for companies in the food processing, household, and industrial products industries. The company sold C&H Packaging to The Interflex Group in December 2009. It acquired New England Extrusion in January 2005.
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