Expanding its plastic film and sheeting capacity
Sioux Falls, S.D.-based Raven Industries Inc. announced in a Nov. 4 press release that its Engineered Films Division (EFD) has acquired Integra Plastics Inc. for approximately $48 million in cash and stock.
Headquartered in Madison, S.D., about 50 miles north of Sioux Falls, privately held Integra specializes in the manufacturing and conversion of plastic films and sheeting. The press release noted that with 12-month sales of more than $35 million, Integra is in the process of increasing capacity through facility expansions at several locations.
The acquisition will immediately expand Raven’s engineered films production capacity, broaden its product offerings, and enhance current converting capabilities, according to the release.
Said Dan Rykhus, Raven’s president and CEO: “Raven’s Engineered Films Division posted revenue growth of 18% in our fiscal 2015 first half. Combining Integra’s fabrication and conversion skill sets with Raven’s ability to develop value-added innovative products will better serve our customers, resulting in an entity that leads the reinforced polyethylene film and sheeting industry.”
Founded in 1991, Integra Plastics currently has about 100 employees. The press released said that the management teams from Integra and Raven EFD will be integrated, and Anthony Schmidt, Raven’s EFD vice president and general manager, is responsible for the combined entity.
The release said that the combined Raven/Integra resources will further strengthen EFD and expand its footprint with additional extrusion and lamination in Brandon, S.D., plus fabrication locations in Madison, S.D. and Midland, Texas.
Terms of the transaction include cash payments of $9 million and the issuance of 1.54 million shares of Raven common stock. The transaction closed on Nov. 3, 2014.
According to the company’s website, Raven is currently structured with three business units, Aerostar and Applied Technology, in addition to the Engineered Films Division that produces geomembrane liners and covers, plus agricultural, construction, and industrial films and sheeting.