Bemis Company, Inc.
) is expanding its Asia-Pacific foothold with the purchase of
Foshan New Changsheng Plastics Films Co. (NCS). Financial terms
of the transaction were not disclosed.
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Headquartered in China, Foshan New Changsheng Plastics Films is a
specialty film manufacturer. The company manufactures PE PP
(Polyethylene & Polypropylene) films used for food, medical
lamination packaging, PE films for process and Terminal
protecting of electronic products.
The acquisition will provide Bemis an opportunity to enhance its
presence in the Asia Pacific region which is in line with its
long-term strategy. The acquisition, however, will not affect the
earnings projections of the company for 2013.
Bemis, in 2011, acquired Mayor Packaging in China, which provided
it a high-barrier footprint focused on the growing food packaging
market in the region. The company has also embarked on an
aggressive cost reduction program by closing nine facilities and
moving the production to other facilities.
Bemis, which belongs to the packaging and containers industry
Berry Plastics Group, Inc.
Graphic Packaging Holding Company
), reported its first quarter 2013 adjusted earnings of 53 cents
per share, up 8% from the year-ago quarter. The results beat the
Zacks Consensus Estimate by a penny. The company's revenues slid
4% year over year to $1.2 billion, due to lower unit sales
Weak volume, a cautious consumer spending environment, weakening
European economic outlook and rising food costs remain major
causes of concern. However, savings from the cost reduction
program due to the closure of unproductive facilities will help
offset these pressures.
Neenah, Wis.-based Bemis is a global manufacturer of flexible
packaging products and pressure sensitive materials sold
primarily to the food industry. The company also sells its
products to other customers in the chemical, agri-business,
medical, pharmaceutical, personal care, electronics, automotive,
construction, and graphic industries.
Bemis currently retains a Zacks Rank #3 (Hold).