New heat-set technology for food applications could lie behind Graham Packaging’s surprising and large purchase of Liquid Container.

            In an analyst call on Aug. 9, after the sale was announced, Graham ceo Mark Burgess said Liquid Container’s new hot-fill capabilities, already rolled out to several customers, could help Graham grow beyond its existing base and into new applications. “We’re very intrigued by it,” Burgess said. “Testing shows real promise.”

            Graham paid $568mn for West Chicago, IL-based Liquid Container, adding its 14 plants and close to $400mn in annual sales. The sale continues to add volume to Graham’s large rigid packaging foundation and marks the largest recent acquisition.

            Many reasons were given for Graham’s purchase of the privately held company. Liquid Container serves a primary food market that differs from Graham, focusing on containers for jams, sauces, oils, and other supermarket staples. Liquid Container’s largest customer is The J.M. Smucker Co. and it specialized in bottles for the liquid-food arena. And while York, PA-based Graham focuses more attention on large, multinational customers, Liquid Containers works with many midsized brand owners.

            Yet, Liquid Containers’ ThermaSet line occupied much attention at the press briefing. The patent-pending process allows containers to be filled at temperatures as high as 205 degrees F, much higher than typical filling temperatures. According to the company in past statements, filling at that temperature reduces bottle shrinkage to less than 1% and avoids problems with warping and broken seals that could lead to product leakage and spoilage.

            Burgess noted that the process could help with a transition to PET for fruit, vegetables, pasta sauces, and other sauces, many of which are now packaged in cans or glass. The process uses no additives but involves how the container is molded, with the vacuum formed at the base.

            Burgess said Graham had in the past looked at polypropylene and other, less-transparent materials for the filling of similar products.

            Burgess noted that while the acquisition was not a philosophical or directional change for Graham, it did mark a new strategy. “Up to a year ago, we did a lot of work internally to right the ship and run the operations like we can and should do,” he said. “Now, we’re more open to looking at opportunities.”