Tekni-Plex to Acquire Tri-Seal International's Operations

Tekni-Plex Inc. and Tri-Seal International Inc. jointly announced yesterday that Tekni-Plex has agreed to acquire the operations of Tri-Seal in a cash transaction. The transaction is structured as an acquisition of substantially all the assets of Tri-Seal by a wholly owned subsidiary of Tekni-Plex and is expected to be completed during the first quarter of 1999, subject to normal regulatory approvals. The purchase price, which has not been disclosed, will be financed from operating cash flows of Tekni-Plex.

According to Dr. F. Patrick Smith, Tekni-Plex chairman and CEO, this acquisition will "dramatically" extend the company's product offerings in the closure liner industry. "Tri-Seal adds highly complementary technology to our traditional laminated closure liner business, as well as our dispenser gasket product lines," said Smith. "In fact, our European operations have been a licensee of Tri-Seal technology for years. Another significant benefit will be the addition of experienced Tri-Seal managers, who will play a key role in operating the combined cap-lining materials business. Simply put, this is a great fit."

Tri-Seal president and COO Bruce Burns added that "as part of a well capitalized, forward-looking company like Tekni-Plex, we can offer customers a growing, international presence in both manufacturing and marketing. This technology-driven parent will further enhance Tri-Seal's ability to deliver the most advanced products in the industry."

Tekni-Plex Inc., Somerville, NJ, is a global, diversified manufacturer of packaging, products and materials for the healthcare, consumer and food packaging industries. Tri-Seal International Inc. produces sophisticated extruded and co-extruded cap-liners and seals marketed under the Tri-Seal, Tri-Gard and Tri-Shield trademarks, among others. Tri-Seal operates an advanced manufacturing facility in Blauvelt, NY.