Covertech Fabricating acquires Seville Packaging

By Joe Whitworth

- Last updated on GMT

Related tags: Vice president of the united states, Packaging and labeling, Packaging

Photo courtesy of Covertech Fabricating
Photo courtesy of Covertech Fabricating
Covertech Fabricating has bought Seville Packaging in a move that will “increase operational efficiency” and provide a “bigger footprint in the industry.”

No financial details were disclosed but Covertech said “75% of employees and the equipment”​ from Seville’s current site in Mississauga, Ontario will be moved to Covertech’s site in Toronto, Ontario within the next few months.

Covertech operates from a 107,000 square foot facility while Seville has a 50,000 square foot site.

Seville Plastics is a member of the Covertech Fabricating Group and after the acquisition the new firm will be known as Seville Industries.

Opportunity for growth

John Starr, vice president of Covertech Fabricating and Seville Plastics, told FoodProductionDaily.com the recent sale of their pool covers business freed up some capital for the acquisition.

We had a number of opportunities for growth in our packaging business and it made sense to grow through Seville who already has a solid customer base.

“It gives us an overall bigger footprint in the industry, we have been there for 20 years now, and this will give us more product and new audiences and an overall picture of where we want to go.”

Starr said the move would increase operational efficiency and make the firm extremely competitive within the market controlling from the start to finish of production.

We can now make it all internally and it will significantly streamline the process. We have always made film, now we can make the bags and pouches – we have taken out the middle men and the work we previously had to contract out​.”

When asked about how the flexible packaging market looked in the foreseeable future, Starr added:

The marketplace is fairly strong and still healthy with the US close to rebounding but it was hurt tremendously in the economic crisis.

“We are in a good position to take advantage of the US marketplace when it comes around and there are already good signs ahead for packaging.

“We will take our time to get properly operational to take advantage and establish a firm foot hold in marketplace and sort out our business oversight​.”

Acquisition complements business

In a letter sent to customers dated 14 June, Covertech Fabricating said: “This acquisition fits in perfectly with the growth strategy of the Covertech Group of Companies and compliments the core business of film extrusion.

“The synergies between Seville Plastics and Covertech Fabricating will result in increased efficiencies for Seville and allow it to be highly competitive in the market place​.”

Seville Plastics will continue to manufacture its range of speciality printed and unprinted packaging.

Seville manufactures stand-up and re-sealable zipper pouches, laminated roll stock, poly bags, poly woven bags, and solventless lamination materials for the food and beverage market.

Covertech Fabricating is a manufacturer of extruded film, both co-ex and monolayer and manufacturer and distributer of reflective insulation and protective packaging.

Related topics: Processing & Packaging

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1 comment

Bankrupt Seville

Posted by J.M.,

You forgot to mention, that they bought the bankrupt assets of Seville Packaging. A sign of trouble in the converting industry.

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