July 06, 2005 14:21 ET

Winpak Sells Paper Bag Business

WINNIPEG, MANITOBA--(CCNMatthews - July 6, 2005) - Winpak Ltd. (TSX:WPK) has sold to Color Ad Packaging Ltd. ("Color Ad") the assets of the printed, paper bag business currently operated from the converting premises at Laird Drive, Toronto, Ontario. The divestment further focuses and aligns Winpak's manufacturing capabilities with core strategic markets.

Winpak plans to consolidate the non-paper business lines also manufactured at the Laird Drive location into other Winpak facilities. Winpak and Color Ad have arranged a smooth transition for customers currently served from the Toronto plant, including temporary continuance of certain manufacturing operations at the facility.

Winpak anticipates that the net proceeds from the assets sold, after recognizing employee termination costs and other items related to the sale and including consolidation of the remaining business from Laird Drive, will have no significant impact on current net earnings and should be modestly accretive to future net earnings.

Upon completion of the transition and consolidation of the business at Laird Drive, the premises will be sold. Timing and terms of sale cannot be determined at this time, but the transaction will result in a profit.

Color Ad, with its head office in Winnipeg, Manitoba, is a North American operated company with two manufacturing facilities in Winnipeg, as well as manufacturing facilities in Charlotte, North Carolina and Toronto, Canada. Color Ad is a privately owned company that specializes in the manufacturing of labels, flexible packaging products and printed paper bags.

Winpak manufactures and distributes high-quality packaging materials and innovative packaging machines that are sold in combination with packaging materials. The Company's products are used primarily for the protection of perishable foods, beverages, pharmaceuticals and in medical applications.

Contact Information

  • Winpak Ltd.
    M.G. Johnston
    Vice President & CFO
    (204) 831-2254
    Winpak Ltd.
    B.J. Berry
    President & CEO
    (204) 831-2216