This week I had the great opportunity to chat with Michael Kocourek, President of Mid Oaks Investments LLC. Mid Oaks is a private equity company with multiple holdings in the plastics packaging arena, including D&W Fine Pack and Plastic Packaging Technologies. We talked about the plastics packaging business environment, and what we might watch for in the future.
Packaging companies increasingly must meet the needs of a customer base that wants to be able buy a wider range of products from their suppliers, at a competitive price. Many customers want larger suppliers, which means if you can expand your product offering, you become more important to your customer. In today's environment it may be faster and cheaper to expand your capabilities through a strategic acquisition. One specific area that many companies are looking at, according to Kocourek, is the environmentally friendly segment of the market. "There were some companies who were waiting to see if the green initiative was just a fad, but that is clearly not the case. Government regulations and big players like Walmart are driving products that are renewable, biodegradable, and use less material."...