ST. CHARLES, Ill., Feb. 26 -- Filmquest Group Inc, has completed what its management calls the first stage of a "bold acquisition plan."
After several years of strategic planning, the company in late February more than tripled its size by acquiring Film Products, Bolingbrook, Illinois, and Patison Trading Co, Inc, Mason, Ohio, announced John Felinski, president and chief executive officer of Filmquest. Terms of the transactions were not disclosed.
Filmquest and Film Products are merchant converters of plastic film such as polyester, nylon, polypropylene and other substrates for packaging food, electronics, automotive and industrial applications.
Patison is a plastic film distribution company supplying plastic films from strategic locations throughout North America. With the consolidation of Patison and Film Products businesses into the Filmquest model, Filmquest will now have an extensive network of direct salesmen and independent sales representatives to service the growing plastic film market.
Myron E. Siegel, a veteran financial strategist and business dealmaker with offices in Bannockburn, Illinois, negotiated and structured the transactions for Filmquest after Felinski and Don Lipka, Patison's president and chief executive officer, identified the opportunities within the industry. Siegel said the combined companies would have sales of just over $35 million.
Siegel added that Filmquest is under a letter of intent on another acquisition scheduled to close this summer. There are discussions underway to acquire several additional companies. Some of the companies under consideration are smaller competitors with up to $25 million in sales.
Filmquest will expand its board of directors to include Lipka, Larry Goldman, president of Tekkote Corporation of Leonia, NJ, and C. Larry Lee, former senior vice president and a director of Harmony Foods Corporation, Santa Cruz, CA, who along with Felinski and Siegel will make up the board.
Lipka also becomes vice president of sales with an equity position with Felinski and Siegel. Lipka said the corporate office would move to its new 65,000 square foot world headquarters at 320 Remington Boulevard in Bolingbrook.
Lipka brings with him global vendor relationships that will re-shape the industry by bringing an unmatched supply chain of high quality films at competitive prices, according to Felinski.
The strategic alliances and global relationships that Lipka brings to the company are key to why Filmquest will be the dominant player in the market, said Siegel. Filmquest is in the process of determining which strategic partners to align with to accomplish its goals. Lipka stated, "You become the industry 2,000-pound gorilla when you purchase as much film as we buy."
Filmquest's Bolingbrook plant is a state of the art converting facility with precision slitting and sheeting, vacuum metalizing and coating capabilities.
Filmquest will also continue to operate a 30,000 square foot precision slitting plant in Greer, South Carolina, under the direction of Mack Owens, who was recently appointed vice president. Felinski said, we are quickly outgrowing the Greer facility and plans are in the works to build a new much larger facility in South Carolina.
Felinski said Filmquest's state-of-the-art facilities, equipment and strategic locations make it the undisputed leader in the merchant converting industry.
Both Felinski and Lipka said the combined companies would enable customers to enjoy lower prices and faster delivery while still receiving the traditional personal service of the three companies. They added, "This business is about service, which has always been the hallmark of the Filmquest team."
First Call Analyst:
Source: Filmquest Group Inc
CONTACT: Myron Siegel, +1-847-919-0804 or Dan Friedlander, +1-847-855-6444 for Filmquest Group Inc