Pearson Packaging buys rival

Pearson Packaging Systems has purchased a Chicago competitor and will move its manufacturing equipment to Pearson’s West Plains headquarters.

President Mike Senske said Pearson will hire about 15 employees as the equipment is installed over the next 60 to 90 days.

The deal allows Goodman Packaging Equipment to complete work on existing customer orders before the machines can be uprooted.

Both companies manufacture machines that make and pack cardboard cartons. Senske said Goodman specializes in gantry, or top-loading, case packers that Pearson does not manufacture.

The combined companies will be able to offer a more complete product line to their customers, who include makers of food, beverage, drug and personal care products, Senske said.

Although Goodman equipment will be moved to Spokane, he said, some service, sales and engineering workers will remain in Chicago to support Pearson and Goodman products. A few will be offered the opportunity to move to Spokane, he said.

“They have a tremendous reputation,” Senske said, adding that the companies have worked together for three years. Merger talks began in July, he said.

He said more products and a strong balance sheet will put Pearson in a good position to build its business when the economy recovers.

“It’s going to allow us to really dramatically expand,” Senske said. “We are definitely going to have to ramp up.”

He said the deal should increase Pearson’s $30 million in annual sales by $10 million to $13 million.

The company employs 130 at its 110,000-square-foot office and manufacturing plant on U.S. Highway 2.

Senske declined to disclose the terms of the Goodman acquisition.