Packaging Dynamics, the producer of specialty bags and wraps for the food service, supermarkets, bakery and retail industries, is preparing for life as a separately quoted company once its parent, Ivex Packaging Corporation, completes its merger with Alcoa.
Ivex has a 48.19 per cent stake in Packaging Dynamics which it will distribute to its [Ivex's] shareholders once the merger goes through, turning Packaging Dynamics to become a publicly traded company. Shares of Packaging Dynamics are expected to trade on a national securities exchange.
For the year ended 31 December 2001, Packaging Dynamics' net sales and EBITDA were $234.8 million and $22.6 million, respectively. The company's management said that it estimated sales growth of around 5 per cent as well as an improvement in operating margins. During the next three years, the management estimated that internal sales growth will be around 4-6 per cent.
"Packaging Dynamics expects to create additional shareholder value over the next several years by achieving internal growth through product line extensions and further penetration into higher growth markets as well as external growth through strategic acquisitions. Packaging Dynamics has strong competitive positions in its markets and the ability to deliver attractive earnings growth," said Frank V. Tannura, Ivex's executive vice president.