North Bay Business Journal

Monday, December 9, 2002, 3:00 am

McCoy Packaging split in acquisition by Paragon


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    PETALUMA — McCoy Packaging will be sticking around in Petaluma, but the 80-year-old label printer will look quite different after partial acquisition by Petaluma-based Paragon Label.

    Starting about a year ago, Michigan-based The John Henry Company, which bought McCoy in August 2000, started paring staff at McCoy and planned to shutter the Petaluma plant. This year, the flexography wine label printing unit was marketed to Paragon and a few other printers, and Paragon acquired it December 6 for an undisclosed sum, according to Paragon president Jason Grossman.

    In mid November, McCoy trimmed its staff from 32 to a couple of dozen, of which about a dozen have gone to Paragon. The reduced John Henry staff will remain at McCoy’s 15,000sf plant at 1250 Holm Road for about a year, then transfer to a small office, according to McCoy president Dan Welty.

    A seven-inch and a 13-inch eight-color press, foil-stamping and embossing machinery, and press staff are moving to the 110,000sf facility at 3810 Cypress Avenue Paragon has shared with its parent, Mrs. Grossman’s Paper Company, since Paragon was launched in late 1998. McCoy’s plant manager, Gary Cane, has become Paragon’s general manager.

    Paragon will get the McCoy name for wine labels in January with plans to gradually phase it out. John Henry will keep the McCoy name for retail packaging for another year.

    McCoy’s other foil-stamping and embossing equipment will go to Michigan in mid January. Six or seven sales and customer service employees will stay in Petaluma to work with clients, Mr. Welty says.

    Digital printing for wineries?

    “We’re putting more emphasis into digital printing, not only for wineries but also for food-and-beverage and health-and-beauty customers,” Mr. Welty says

    Come February, wine label printing will be just 35% of John Henry’s business, compared to 60% before the sale. Whether or not that will increase depends on winery acceptance of digital printing, according to Mr. Welty.

    Paragon has 300 clients, and McCoy has nearly 1,000. Notable clients include Don Sebastiani & Sons, Niebaum-Coppola Estate Winery, and Viansa Winery & Italian Marketplace.

    For more information, contact Paragon at 707-773-4363 or www.paragonlabel.com, or McCoy at 707-778-1250 or www.mccoypackaging.com.

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