Hilex Poly to acquire paper bag company

Hilex Poly, a Hartsville, South Carolina-based producer of plastic bags and film, says it has entered into an agreement to acquire Duro Bag Manufacturing Co., a Florence, Kentucky-based manufacturer of paper bags.

Duro Bag provides point-of-purchase paper bags to key markets throughout the United States, such as food service, specialty retail, grocery and mass merchant.

The combined company will have more than 3,000 manufacturing jobs in the U.S. and more than 600 in Canada and Mexico.

“The acquisition of Duro Bag will enable us to expand our portfolio of 100-percent-recyclable products to meet customer demands as well as broaden our reach to other market segments,” says Stan Bikulege, chairman and CEO of Hilex Poly, “We are pleased and excited to welcome the Duro Bag family into Hilex.”

In addition to manufacturing plastic products, Hilex claims that it operates the largest closed-loop plastic bag recycling facility in the world. Through its process, the company recycles plastic bags into resin pellets that are then used to manufacture new plastic bags.

“Hilex continues to focus on developing products that are recyclable, sustainable and environmentally friendly,” Bikulege says. “We look forward to expanding our capabilities and continuing to provide great products and service to a growing base of customers.”

A spokeswoman for Hilex says her company is committed to providing sustainable products to its customers across multiple markets.

“Duro Bag produces paper bags with the highest amount of recyclable content available. Together, we provide the highest quality sustainable product to our customers,” she says.

Hilex Poly has locations and operations in 12 states. In addition to Florence, Duro Bag has 10 other facilities in the United States. The combined company will employ more than 3,000 people in manufacturing throughout the U.S. and more than 600 in Canada and Mexico.

Hilex is majority owned by Wind Point Partners, a Chicago-based private equity investment firm.

Alex Washington, a managing director at Wind Point, says “Completing acquisitions was a key value driver we had outlined when we invested in Hilex. The Duro Bag acquisition is a great opportunity to grow our product offerings, providing better value for our customers.”

The transaction, which is expected to close at the end of the second quarter, is subject to customary closing conditions and regulatory approvals, Hilex Poly says.