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Alpha Industries Announces Joint Venture with Mercury Plastics, Inc.
February 16, 2006
Alpha Industries of the Sigma Plastics Group ("Alpha") is proud to announce a joint venture with Mercury Plastics, Inc. ("Mercury") of City of Industry, CA, a leading manufacturer of custom bags and film. Mercury has extended capabilities in co extrusion, cast film, converting and high end printing processes.
Mercury Plastics, Inc filed for Chapter 11 bankruptcy in May of 2005. After reorganization New Mercury Plastics now consist of a joint venture between Alpha and the Deutsch family, the previous owners of Mercury. Going forward Mercury will continue operating its 250,000 sq ft operation in City of Industry, CA, as well as its two international operations located in Chile and Mexico. In 2005 combined revenues of Mercury was US $85 million.
In a simultaneous deal Mercury has sold its Bowling Green, KY facility to a third party. Other details that Alpha is proud to announce, is the ability at closing to pay unsecured creditors .80 to the $1 on their unsecured claims.
Alfred Teo of the Sigma Plastics Group is excited about the new opportunity, "I am pleased we were able to put together a favorable deal with the unsecured parties and protect a good portion of their interests. In addition, I am excited about the opportunities that exist with Mercury. It allows us to expand our existing product line but also allows for us to make use of our core competencies of poly extrusion. The Chile and Mexico plants provide Sigma with a springboard into international markets that we have not had exposure to. Our partnership is exciting and allows both parties to take advantage of many synergies."
Benjamin Deutsch of Mercury Plastics shares in Mr. Teo's outlook, "We are very happy to both successfully confirm a plan of reorganization and have the opportunity to team with the Sigma Group of companies. Together, we can chart a successful path of growth in the USA, and accelerate our growth in Mexico and Chile. We look forward to the strong financial and technical support that Sigma can provide for our industrial packaging markets as well as sales growth potential for printed and converted bags in which Mercury specializes in. The good relationship that Sigma exhibits with its suppliers and customers is something we are also looking forward to."
Going forward the management of Mercury Plastics, Inc. will consist of Alfred Teo as Chairman and CEO, Benjamin Deutsch as President and COO, Andrew Teo as CFO, Andrew Deutsch as Senior Vice President, and Zachary Deutsch as Executive Vice President of Sales and Operations.
With 13 independent manufacturing facilities spread throughout the United States and Canada, Alpha Industries offers one source for extruded polyethylene film and bags. Alpha Industries Corp. is a member of the Sigma Plastics Group of companies, the largest privately held film manufacturer in the plastics industry. Sigma Plastics Group annual production exceeds 1 billion lbs. of polyethylene.
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