Ropak Seeking to Acquire Canadian Packaging Firm

Ropak Corp., the Fullerton-based plastic packaging firm that has made six acquisitions in the last three years, has launched a $28-million bid for Vulcan Packaging Inc. of Toronto.

Ron Cameron, Ropak’s vice president of finance, said the approach to Vulcan is a friendly one and that the proposal would not be pursued if the Canadian company objects. Ropak President William Roper is in Toronto discussing the proposal with Vulcan, Cameron said.

The proposal follows Ropak’s unsuccessful attempt last year to acquire a large Ohio packaging firm, Buckhorn Inc. That bid was rebuffed by Buckhorn and turned into a bitter proxy battle. Ultimately, to thwart the Ropak bid, Buckhorn directors voted to sell the company to another suitor. Ropak posted a $400,000 loss in the deal.

A spokeswoman at Vulcan, which has 800 employees in 17 manufacturing facilities throughout Canada, said the company would have no comment on Ropak’s offer until next week.

Vulcan last year reported $1.4 million in earnings on sales of $68 million. Ropak, with 600 employees at five plants in the United States, three in Canada and one in Japan, posted a $1.6-million profit on sales of $69 million in 1987. It is proposing to pay for Vulcan with 50% cash and the rest in convertible securities.

After posting sizable increases in over-the-counter trading Tuesday, both companies’ stocks dropped back a bit by the close of the market Wednesday. Ropak closed at $7.50 per share, down 25 cents from Tuesday but still up 25 cents from Monday, while Vulcan closed at $2.56 a share, down 12.5 cents from Tuesday but up 25 cents from Monday.