Tegrant Corporation delivers the packaging so your goods arrive in tip-top shape. The US maker of custom-molded foam plastic specializes in elegantly engineered protective packaging and energy-efficient components. Tegrant is divided into three business brands: Alloyd, Protexic, and ThermoSafe. Using custom-molded plastic foam, thermoformed plastic, corrugated paperboard, die-cut foam plastics, and wood, each produce an array of damage- and temperature-resistant packaging designed for the healthcare, consumer electronics, major appliance, and automotive industries. Formerly known as SCA Packaging North America, Tegrant was bought by packaging giant Sonoco Products in 2011.
Formerly owned by Metalmark Capital, Tegrant was acquired for $550 million in cash, and the deal created a North American leader in multimaterial protective packaging.
Tegrant's ownership has changed a couple of times over the years. Metalmark Capital bought it from Sweden's Svenska Cellulosa (SCA) for $400 million, which came at a time when the company struggled to shore up revenues and stabilize a shaky bottom line. Tegrant faced the double crunch of weakening demand from housing, automotive, and consumer-related end-markets, and rising energy and raw material costs. Metalmark has invested additional funds, enabling it to restructure, shift its product mix, and cut costs. No small order, Tegrant's 30-plus manufacturing and testing facilities and large mobile workforce are channeled through three businesses, each with its own corporate structure and niche packaging markets.
Tegrant's consumer-goods packaging subsidiary was re-launched as Alloyd Brands and, without skipping a beat, acquired Dot Packaging in late 2007. Dot manufactures and prints such paper products as blister cards, clamshell inserts, and folding cartons. Adding Dot to the Alloyd Brands' business of thermoformed plastic packaging and retail displays, and blister packaging machinery, creates a sole-source packaging and service supply chain. Customers, which have included manufacturing giants L'Oréal (cosmetics), BIC (office supplies), and Bosch (power tools), benefit from improved buying efficiencies. Alloyd gains increased opportunities to build sales.
Tegrant's ThermoSafe business is also on a roll. In 2010 Tegrant purchased the GREENBOX lineup from Entropy Solutions, a thermal technology supplier. GREENBOX extends Tegrant's life sciences offerings with a biodegradable packaging designed to safely transport temperature-sensitive items. The deal included a global license agreement for the material used in producing GREENBOX and an agreement to jointly develop new products and materials. ThermoSafe is developing its geographic presence, too. It targets business in the Asian/Pacific region through a joint venture with Hong Kong investment firm FEC Corporation. Headquartered in Singapore, the venture manufactures and distributes the ThermoSafe branded insulated shippers, Polar Pack gels, and provides Nomadic pre-qualified shipping services.
In the meantime, Tegrant's oldest business unit, Protexic Brands, reflected the company's exposure to the auto industry's collapse. In spring 2009 it shuttered its foam plants in Marion, Ohio, and Greeneville, Tennessee. The Ohio plant made more than 80% of its auto products. Protexic Brands is among the largest and longest-operating molders of engineered foam components and protective packaging for automotive, industrial, and consumer products. As the economic recovery slowly accelerates, Protexic Brands is reinvesting in its offerings and manufacturing capacity. In early 2011 the unit purchased Createc Corp., an Indiana-based maker of custom-molded foam products for protective packaging and automotive applications. Along with Createc, Tegant acquired four manufacturing facilities in the US and Mexico. – less