Note 2 - BUSINESS ACQUISITIONS AND DISPOSITIONS

On September 8, 2000, the Company purchased the pressure sensitive materials product line of Kanzaki Specialty Papers, Inc., which had approximately $78.0 million in sales in 1999. This business supplies direct thermal pressure sensitive products to printers for labels used for bar coding, shipping and inventory labeling, and a variety of other end uses. Assets acquired with this business include a long-term supply agreement to purchase Kanzaki’s high quality face paper to which adhesive will be applied using already available state-of-the-art equipment. No equipment or facilities were acquired with this business. The total cash purchase price of $45.2 million has been accounted for under the purchase method of accounting, and results of operations subsequent to September 7, 2000, are included in these financial statements.

On August 31, 2000, the Company purchased the specialty plastic films business of Viskase Companies, Inc., which supplies a variety of shrinkable barrier bags, films, and cook-in bags to beef, pork, poultry, and cheese processors. It had net sales of approximately $150.0 million in 1999. This acquisition has complex technologies that both complement and extend the technologies employed in the Company’s very successful flexible packaging business. In addition, this acquisition brings to the Company immediate access to important fresh meat markets and is a natural extension of the strong position and relationships already established in the processed meat, cheese, and poultry markets. Included in the acquisition are manufacturing facilities in Centerville, Iowa; Pauls Valley, Oklahoma; Swansea, Wales; and São Paulo, Brazil. The total cash purchase price of $226.2 million has been accounted for under the purchase method of accounting, and results of operations subsequent to August 30, 2000, are included in these financial statements.

Effective August 1, 2000, the Company purchased the assets of the flexible packaging business of Arrow Industries, which had net sales of approximately $33.0 million during the preceding twelve months. Equipment acquired with this business is being strategically deployed into existing facilities to provide additional capacity. The total cash purchase price of $18.8 million has been accounted for under the purchase method of accounting, and results of operations subsequent to July 31, 2000, are included in these financial statements.

On January 6, 2000, the Company purchased the remaining 13 percent minority interest in Morgan Adhesives Company (MACtac). The Company issued 1,730,952 shares of its common stock and paid $3.4 million in cash. Upon the acquisition of these minority shares, MACtac became a wholly-owned subsidiary of Bemis Company, Inc.

On January 13, 1999, the Company purchased the remaining minority interest in voting preference shares of Perfecseal Limited in accordance with an agreement dated April 29, 1996, relating to the acquisition of Perfecseal Healthcare Packaging Division (Perfecseal) of Paper Manufacturers Company, Inc. A cash payment of $1.4 million was made to acquire the remaining outstanding minority interest.

On June 4, 1998, the Company formed Bemis Europe Holdings, S.A. to acquire Techy, a European manufacturer of flexible packaging. The acquisition, which was effective on June 30, 1998, and was accounted for under the purchase method of accounting, added manufacturing and sales locations in Belgium, France, and the United Kingdom. Approximately $11.3 million was paid to acquire 100% control. In October 2000, in accordance with an earn-out provision of the original purchase contract, the Company paid an additional $1.5 million.

Effective February 1, 1998, the Company purchased a one-third interest in a newly formed Brazilian joint venture, ITAP/Bemis Ltda. for $38.9 million. This joint venture between the Company and Dixie Toga, S.A., a major supplier of flexible packaging in South America, creates an organization that is strong in market knowledge and presence to serve the needs of the South American marketplace. Since Bemis did not purchase a controlling interest in the company, this investment and future earnings are recorded under the equity method of accounting.

Supplemental pro forma results of operations giving effect to the acquisitions are not presented because they are not material.

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