Clear Lam Packaging, Inc. announces the sale of its Thermoforming Division to D&W Fine Pack, a leader in the foodservice packaging industry and a portfolio company of Mid Oaks Investments, LLC.
With annual sales of approximately $80 million, the Clear Lam Thermoforming Division is a major supplier of food packaging containers made from polyethylene terephthalate (PET) and polylactic acid (PLA) to leading North American food processors and retailers. The sale includes facilities located in Elk Grove Village, Ill., Vernon, Cal., and one international facility in Nanjing, China.
“We are big believers in the thermoforming sector and believe that the combination of our companies will make the business uniquely qualified to serve the marketplace,” says James Sanfilippo, President and CEO of Clear Lam Packaging, Inc. “We also recognize that scale is important for sustained growth in our industry and we expect our customers to benefit from the addition of D&W Fine Pack’s other thermoforming product offerings and diverse manufacturing locations.”
“Combining Clear Lam Thermoforming with D&W’s existing portfolio of businesses will add innovative products and strengthen our focus on sustainability and environmental stewardship,” says Mark Staton, President and CEO, D&W Fine Pack. “With demand for renewable packaging materials growing, Clear Lam has made great strides in bringing new designs and technologies to market and we’re excited to tap into their technical expertise.”
Clear Lam will continue to own and operate its other three divisions, which accounted for over 65 percent of company revenue in 2011. Clear Lam plans to expand its Flexible Films and Forming Films divisions and anticipates explosive growth in its CL Polymers unit. CL Polymers manufactures proprietary compounds designed to improve performance characteristics for both bioplastics and traditional petroleum-based plastics.
“Clear Lam will continue to invest in new technologies that provide innovative solutions to our customers while reducing costs,” says Sanfilippo. “Developing new packaging structures that incorporate renewable raw materials or recycled content and designs that allow for light weighting will remain key areas of focus for the next several years.”
Clear Lam shall continue its mission to emphasize the use of renewable packaging materials produced from plant-based bioplastics along with ingredients that enhance performance. These materials are part of the company’s Project EarthClear program and replace petroleum-based plastics with biobased ingredients developed to reduce the introduction of fossil carbon into the atmosphere.
D&W Fine Pack is headquartered in Fountain Inn, South Carolina. Terms of the sale are not being disclosed. BMO Capital Markets served as exclusive financial advisor to Clear Lam in the transaction.