Georgetown, Mass. (January 2, 2013). 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 manage¬ment 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.
This news release contains statements relating to UFP's expected financial performance and/or future business prospects, events and plans that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, statements about the anticipated benefits from UFP's acquisition of PAC, expectations about the synergies to be achieved from such acquisition, expectations about the Company's prospects and customer base, the Company's acquisition opportunities and strategies, its participation and growth in multiple markets, its business opportunities, the Company's growth potential and strategies for growth, anticipated revenues and the timing of such revenues, and any indication that the Company may be able to sustain or increase its or PAC's sales and earnings or sales and earnings growth rates. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation risks associated with the identification of suitable acquisition candidates and the successful, efficient execution of acquisition transactions and integration of any such acquisition candidates, including PAC, as well as other risks and uncertainties that are detailed in the documents filed by the Company with the SEC. Accordingly, actual results may differ materially. Readers are referred to the documents filed by the Company with the SEC, specifically the last reports on Forms 10-K and 10-Q. The forward-looking statements contained herein speak only of the Company's expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions, or circumstances on which any such statement is based.