Ropak Acquiring 2 Canadian Plastic Makers for $8.7 Million

Ropak Corp., a manufacturer of plastic packaging products, said Tuesday that it has agreed to acquire two plastic container operations near Toronto in a deal valued at a minimum of $8.7 million.

Ropak’s subsidiary, Ropak Canada Inc., will acquire a plastic pail operation from Vulcan Packaging Inc. in exchange for a $5.2-million note with a 7.5% interest rate. The note can be converted into Ropak stock at $9 per share.

Fullerton-based Ropak also will acquire another Vulcan plant where blow-molded plastic containers are made. This acquisition is in exchange for 1 million shares of InVitro International Inc. common stock. Since October, Ropak has held almost a quarter of InVitro’s shares. Ropak acquired the shares through an investment in the Irvine-based medical testing products company and a later debt settlement. Ropak has guaranteed a price of $3.50 per share through June 30, 1994, and would make up any shortfall.

The transactions are scheduled to be completed on April 2. The Vulcan plants generate combined revenue of about $13.5 million each year.