Packaging merger will expand product offerings and client base

Pretium, a provider of custom blow molded packaging solutions, and PVC Container Corporation supply packaging to various markets including personal care.

According to Pretium’s President and CEO, George Abd, while both companies have focused on small to medium volume, custom bottle applications, with most of their recent growth coming from PET bottles, the specific focus for each company has been slightly different.

“While Pretium has invested significantly in one-step, wide mouth PET technology and assets, Novapack has made significant investment in two-step, narrow neck PET and pre-form manufacturing,” ​he said.

Increasing product portfolio and existing client base​​

The merged company will therefore offer its customers “a full range of one-step and two-step PET bottles, as well as extrusion blow molding and injection blow molding alternatives in HDPE and PP,” ​he added.

In addition, there is very little overlap between the two companies’ current customers, said Abd, which allows this enhanced product portfolio to be targeted at an increased client base.

The new entity to arise from the merger will retain the name Pretium Packaging, and is expected to generate more than $240million in combined sales supplying to over 500 customers from 14 manufacturing facilities in the US and Canada.

With its headquarters in Chesterfield, Missouri, the company will be managed by the current Pretium management group and certain members of the Novapak team, it was said in a statement.

Pretium founder and current owner, Keith Harbison, will sit on the Board of Directors and hold a significant minority share in the combined business.

It is expected that the transaction will be finalized in the first quarter of 2010.