Sussex-based Quad/Graphics Inc. has sold Transpak, its heavy-duty industrial wood crating business, to FCA Packaging.
The deal will generation around $10 million in net proceeds, which Quad plans to use to pay down debt.
Transpak has a 300,000-square-foot facility in Franklin where it designs, engineers and builds custom wood crates for commercial and industrial markets. Quad acquired in the business in 2013 as part of its acquisition of Proteus Packaging, a high-end paperboard packaging business also located in Franklin.
Quad continues to own and operate the former Proteus business as part of its nationwide consumer print packaging platform.
Joel Quadracci, chairman, president and chief executive officer of Quad, said the company is evaluating its assets with a focus on long-term value-creation and strategic fit as part of its Quad 3.0 strategy.
“As part of FCA, Transpak will be part of a leading and fast-growing manufacturer of custom industrial crates, skids and boxes, and benefit from FCA’s broader scale, expertise and talent,” Quadracci said.
Based in Moline, Illinois, FCA Packaging
offers a broad range of customized packaging for OEMs in a number of industries, including energy, electrical, aerospace and defense, engine and components, and industrial fabrics and film.
“We are thrilled to acquire such a high-quality business as Transpak, which has a very experienced and successful management team and employee base,” said David Wilsted, chief executive officer of FCA Packaging. “With Transpak, we have greater geographic reach and an expanded set of services that will create additional value for our customers worldwide.”
Wilsted said Transpak would continue operating out of its current facility.
"We intended to have a significant presence in (Wisconsin) and Transpak in Franklin will be the beginning of that," he said in an email.