Polyair Inter Pack Acquires Mabex Universal

Polyair Inter Pack, a Toronto-based manufacturer of protective packaging and insulation materials, has completed its agreement to acquire the North American business and operations of Mabex Universal Corp., a subsidiary of Mabuchi Corp. Japan, which produces and markets high-end protective polyethylene foam packaging.

The purchase will enable Polyair to increase capacity in its packaging division, expand its presence in the furniture and automotive area and extend its current product line by offering special packaging needs to large electronics manufacturers. Polyair will also now have access to more advanced foam and lamination technology.

The acquisition is part of Polyair's strategic plan to locate manufacturing facilities in all major markets in the United States. The purchase price is approximately C$12.5 million, including assumed liabilities. The acquired business will continue to operate from its manufacturing facilities located in Bardstown, KY, and Tijuana, Mexico. Mabex expects 1998 revenues of approximately C$8.0 million, excluding Mexican operations. Polyair has reached an agreement in principle to sell the Mexican facility.

Polyair Inter Pack Inc. operates six U.S., one Mexican and one Canadian manufacturing facilities, marketing products through a network of 1,300 distributors across North America.