Derlan Sells Roberts PolyPro, Brenton to New Investor Group

Toronto-based Derlan Industries Ltd last week completed the first divestments in its program to focus on its aerospace and pump businesses by selling Roberts PolyPro Inc. of Charlotte, NC, and Brenton Engineering Co. of Alexandria, MN, to a group of investors for gross proceeds of approximately $40 million. Proceeds will be used to eliminate bank debt and for general corporate purposes.

The group of investors is an Atlanta-based company named Pro Mach Inc., which is a new venture into the packaging market. The firm now owns three packaging supplier companies. In addition to Roberts PolyPro and Brenton, Pro Mach has also purchased Wexxar Packaging Machinery Ltd., of British Columbia, Canada. Roberts PolyPro manufactures production equipment and plastic products for the consumer products and packaging industry, while Brenton and Wexxar make a variety of case erecting, packing and sealing machinery.

"Brenton offers some of the top technologies in case packing," suggests Pro Mach's Dale Herron, "while Roberts PolyPro has expertise in marrying plastic pieces to fiberboard, such as handles, fitments and attachments."

"We are pleased that these first divestments are finalized," says Dermot Coughlan, CEO and chairman of Derlan. "This completes almost a third of the $125 million in planned divestments announced a month ago. Negotiations for further divestments are proceeding."