A Clinton, Iowa, plant is part of a multi-company acquisition deal.
Scotia Investments Limited (SIL), together with CKF, Inc., have reached an agreement with U.S.-based company UFP Technologies Inc. that CKF will purchase UFP’s Molded Fiber Technology Inc. The new corporate entity will be known as MFT-CKF, Inc. UFP Technologies Inc. has a facility in Clinton.
MFT designs, manufactures, and distributes environmentally responsible protective packaging solutions for consumer goods, electronics, and industrial products markets across North America from their plants in Clinton and El Paso, Texas. CKF manufactures molded pulp, foam and PET products for the food service, packaging and retail sectors, servicing customers globally from their five plants across Canada.
MFT’s industry stature together with its successful track record and the growing consumer demand for more widely recyclable packaging assures a long term and viable future, the company said in a news release.
Customers will benefit from the combined forces of the two organizations as both are committed to investing in employees, capacity and products that deliver competitive and high-quality sustainable packaging solutions, the release said.
“We are excited to be joining forces with the team at MFT. As proven market leaders in the production of molded pulp protective packaging, they are known by their customers and industry peers for their quality products, technological innovation, and their focus on sustainability. MFT’s products are complementary to our core competencies,” said Ian Anderson, president of CKF.
“Together, our employees, the products we make and the customers we serve are well aligned and we look forward to working with the team at MFT to support their growth while deepening and broadening our reach into the US market,” added Mr. Anderson.
SIL President and CEO Randy MacMillan added: “On behalf of our board and shareholding family, I extend a warm welcome to the employees of MFT. We are looking forward to our future together and the synergies that will come as a result of this acquisition. We continue to invest in growth opportunities and organizations whose employees and customers value leading- edge sustainable products, long-term stewardship, environmental integrity, and community well-being.”
“Molded Fiber Technologies has been a valued part of the UFP family for many years,” said R. Jeffrey Bailly, chairman and CEO of UFP Technologies. “Its innovative, talented, and customer-focused team will be better positioned to grow and improve the business as part of CKF, a global leader in sustainable molded fiber packaging solutions,” Mr. Bailly added. “Although it is difficult to part with such a wonderful business, UFP now focuses primarily on serving the MedTech market. We wish the MFT team and their new partners at CKF great success.”
MFT’s senior management team will stay in their respective positions and continue running the businesses, helping with a smooth and orderly transition. For now, and the near future, it is business as usual.