Barry-Wehmiller Cos. Inc., a St. Louis-based holding company, disclosed yesterday that it has signed a letter of intent to acquire United Container Machinery Inc. of Glen Arm, a manufacturer of equipment for the corrugated-box industry.
United Container has notified the state Department of Labor, Licensing and Regulations that as part of the transaction, 185 workers could lose their jobs. But the president of United Container said yesterday that he doesn't expect that to happen.
"I expect every single employee to cease employment with United Container on July 31 and start working for a new company the next day," said Gregory Landegger, president of United Container, which has been in business for more than 100 years.
It is too soon to say whether that is the way it will work out, said Michael Harris, president of MarquipWard, a unit of Barry-Wehmiller. If the sale is completed, United Container will be folded into MarquipWard, Harris said.
"It is our intent to keep the workers," said Harris, "but it is too soon say what will happen. We are just beginning this process. We are still learning about United Container, and we will have to determine what makes sense."
Harris is a former president of Ward Machinery Co. in Hunt Valley, a supplier of corrugated-box machinery that was acquired by Barry-Wehmiller in March. Ward was merged with another Barry-Wehmiller acquisition, Marquip Co. of Madison, Wis., in April to form MarquipWard.
Harris said Ward had about 270 employees at the time of the acquisition, nearly all of whom retained their jobs.
The purchase of United Container is scheduled to close July 31. The purchase price was not disclosed.
Landegger said the corrugated-box machinery industry is very competitive and is in the middle of a consolidation movement that has resulted in a number of acquisitions. "It is better for our people to be a part of a larger company with a wider variety of products," he said.
Landegger said United Container workers were notified of the pending changes May 21. He said the layoff notice filed with the state was required to meet a technical requirement of the law.
Barry-Wehmiller is a privately held company that is expected to post sales of about $400 million this year. It has 3,200 employees.