South Atlantic Packaging Corp., a contract packaging company based in Winston-Salem that employs about 15 full-time workers, announced that it has bought Prostar Packaging of Pottstown, Pa.
The deal was finalized Jan. 21, "one day before the big snowstorm," said Pat Grantham, vice president of sales and an owner of South Atlantic. Financial terms of the transaction were not disclosed.
The acquisition enhances South Atlantic’s presence in the food and beverage packaging arena and provides it with additional capacity and equipment to grow throughout the mid-Atlantic region.
As part of the deal, South Atlantic will take over Prostar's 100,000-square-foot facility in Pennsylvania that serves clients such as Del Monte, Big Heart Pet Brands and Benjamin Moore. The Pennsylvania facility will add to South Atlantic's two Triad facilities that total 200,000 square feet, and additional locations in Somerset, N.J.
Jim Cash, the former owner of Prostar Packaging, will remain with South Atlantic as director of operations.
Grantham said no layoffs are planned as a result of the deal.
"We have a great management team in place, and we anticipate increasing the number of employees moving forward," he said. "There are approximately 40 employees working in Pennsylvania."
Grantham also said that the business model of Prostar was similar to that of South Atlantic. Founded in 2000, South Atlantic provides services such as shrink-packaging, bagging, labeling and creating temporary displays for consumer packaging companies.
"We're taking the products and making them retail ready," Grantham said. "You'll see it on the shelf at Costco or Harris Teeter, a lot of different retailers."
Grantham said the deal with Prostar is South Atlantic's first-ever acquisition and that his company plans to pursue additional deals in the future.
"We'll grow organically as well as through acquisitions," Grantham said.
South Atlantic was honored in 2015 as one of the Triad Business Journal’s 50 fastest growing private companies. The company has a total of 150 employees. While 15 are full time, the remaining 135 are temporary.