Quantcast

North Bay Business Journal

Monday, March 25, 2013, 7:00 am

Reynolds Packaging expands in merger

Company will move to former home of Standard Structures

By

Print Friendly Print Friendly    

Share this item

    WINDSOR — Two family-owned Bay Area packaging and janitorial products supply companies are coming together under the same roof of a new 42,000-square-foot distribution facility.

    On March 29, Petaluma-based Reynolds Packaging (707-559-2080) is set to merge with Richmond-based Oakland Packaging & Supply (510-307-4242, oakpackaging.com). Meanwhile, Reynolds Packaging is moving to a 42,000-square-foot warehouse at the former Standard Structures plant, now a multitenant industrial park in Windsor, from the 30,000-square-foot location it has occupied since moving from Santa Rosa to Petaluma three years ago.

    “We will have the advantage of using their manpower, resources and distribution network to bring more products and a wider delivery area to our customers outside of the Bay Area while still keeping the personal touch with our local customers,” said Dan Reynolds. His 84-year-old father, Bob, and he started the company in 1988.

    Reynold Packaging’s name will stay the same for the time being. As Oakland Packaging moved to Richmond years ago and is reaching further into the Central Valley, its name will eventually change to something regionally relevant, according to President Phil Ferris, 67.

    “Dan has the same competitors I have, and in most cases, they are big companies,” Mr. Ferris said.

    Reynolds Packaging is forecasting $8 million in sales this year. It has 11 employees, including the drivers of the five trucks that make deliveries to businesses from Mendocino south to Salinas and east to the Sierra Nevada foothills.

    Oakland Packaging had $59 million in sales last year, has 120 employees and delivers from Richmond, Chico, Fresno and the Peninsula. It added a North Bay hub in September 2009 with the merger of Petaluma-based Northbay Paper & Packaging (707-778-5170, northbaypaper.com), started in 1979, into Oakland Packaging. Northbay Paper co-owner Bob DelPonte still operates the Petaluma location under that name, serving accounts from Healdsburg east to Napa and Vacaville and south to the East Bay and Peninsula.

    The addition of Reynolds Packaging fills in key delivery routes for Oakland Packaging in the Interstate 505 corridor, according to Mr. Ferris.

    Reynolds Packaging gets access to more, larger trucks that travel its extended delivery area more often, Dan Reynolds said.

    “One of the big bonuses for joining a larger company is because, with fuel prices what they are, it is harder to serve a far-reaching area,” he said.

    While there is some overlap in their product catalogues, Reynolds Packaging and Oakland Packaging do have complementary strengths.

    There is overlap in what both carry for food companies. Reynolds targets food processors and agricultural businesses with industry-standard plastic liners and boxes for the former and regionally branded boxes for produce for the later. The company also is getting into sourcing custom glass bottles for sauces, beverages and food products.

    Oakland Packaging has a niche in baked goods and light industry, and growth is coming from food processing companies.

    Both also carry products for the wine industry such as cushioned bottle shippers and tasting room supplies. That made a Windsor location, more centrally located in wine country, attractive, according to Mr. Ferris.

    Oakland Packaging carries more janitorial supplies than Reynolds does.

    Reynolds Packaging’s merger with Oakland Packaging was a natural fit, as it was for Northbay Paper, because the founders all worked at Crown-Zellerbach, a large San Francisco paper producer now part of International Paper, according to Dan Reynolds and Mr. Ferris.

    Three years after the first acquisition of Crown-Zellerbach in 1985, Bob Reynolds and Mr. Ferris left to start their own companies. Mr. Ferris did a leveraged buyout of two owners of Oakland Paper & Supply. He suggested they combine their companies, but Bob Reynolds wanted to build a company for his son to operate.

    “I came from a $1 billion company, and I understand the challenges of running a $5 (million) to $10 million company,” Mr. Ferris said.

    Copyright © 1988–2014 North Bay Business Journal
    View the policy for linking to website content.

    Print Friendly Print Friendly    

    Submit Your Comments

    Required

    Required, will not be published

    Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments and Letters Policy. To share this item by email or social media, use the links above.

    Do not use this form to contact people, companies or organizations mentioned in this story. Contact them directly. Private messages left here will be deleted.