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New Jersey company is the focus of sale and business merger

Flex Products, a New Jersey plastic package container manufacturing company, is being bought by VisiPak. The sale and business merger gives VisiPak the flexibility to move its operations between its home state and New Jersey in an effort to reduce shipping costs and improve local business. VisiPak hopes that Flex Products' 70,000 square foot facility will increase production by 50 percent.

According to VisiPak, a 50 percent increase in production would increase their revenue by 20 percent. As part of the deal, Sinclair & Rush, Inc., VisiPak's parent company, will gain 50 to 70 employees. VisiPak's current facility and the newly acquired Flex Products facility in New Jersey will continue separate operations.

In addition to adding to production, VisiPak will also gain new sizes, shapes and closure styles for its plastic tube containers. This acquisition by VisiPak is just a part of larger expansion that has been ongoing. The company moved its operations to another facility that is hoped to increase production of their current operation by 50 percent, which the company believes will yield a 50 percent increase in revenue for that operation.

Anytime a company looks to expand its operations, they take a risk, and spending time considering the ins and outs of a sale and business merger can help avoid problems in the future. Once the risks are analyzed, seeking advice and assistance with the negotiating and documenting of an acquisition may be the key to its success. Ensuring that the documentation contains all of the business and legal terms agreeable to both parties may also help avoid potential litigation later. This is especially important when the company acquiring the business and the company selling the business are based in different states. Each state may have its own requirements, and making sure the requirements of both states are satisfied is crucial.

Source: St. Louis Business Journal, "VisiPak buys plastic packaging manufacturer," Matthew Hibbard, Oct. 26, 2012

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