Georgetown, Mass. - UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and specialty component products, today announced the acquisition of Packaging Alternatives Corporation ("PAC"). Founded in 1977 and located in Costa Mesa, California, PAC is a full service designer, converter, and distributor of foam plastic products, specializing in technical polyurethane foams principally for the medical market. Sales in 2011 were approximately $10 million.
"We are very excited about joining forces with a highly respected medical market specialist," said R. Jeffrey Bailly, Chairman, CEO, and President of UFP Technologies. "PAC brings us a profitable book of business, very strong medical customer relationships, a complementary product line, and a solid management team - we are especially pleased that company leaders Richard and Tim Tunila are joining UFP. Together, we can serve our customers more efficiently, with a broader range of products. We are committed to expanding our medical business, with its excellent growth potential and high barriers to entry, and expect this acquisition to improve our coverage of the Western U.S., enhance our manufacturing capabilities, and add to our earnings."
Richard Tunila, PAC's current President, is equally enthusiastic. "Joining forces with UFP expands our product lines and manufacturing capabilities," said Tunila. "With their diverse capabilities, strong industry reputation, and strategic plant locations, they are a great fit for PAC."
According to Bailly, UFP remains committed to continued growth through strategic acquisitions. "We still have significant cash and credit resources on hand," said Bailly. "We will continue to search for companies that provide a good strategic and cultural fit, and improve our position in our target markets."
UFP Technologies is a producer of innovative custom-engineered components, products, and specialty packaging. Using foams, plastics, composites, and natural fiber materials, the Company designs and manufactures a vast range of solutions primarily for the medical, automotive, aerospace & defense, electronics, consumer, and industrial markets. The UFP team acts as an extension of our customers' in-house research, engineering, and manufacturing groups, working closely with them to solve their most complex product and packaging challenges.