Terms of the transaction were not disclosed, Leisure Way management continues with the business. Leisure Way is a regional producer of white paper plates, most of which are marketed under private labels at its customers' retail outlets. A large portion of Fonda's plate and cup production is also sold under private label programs.
Management is extraordinarily capable, and that has been reflected in the company's results.
Their Southern location will strengthen Fonda's coverage in a key market area. We believe we will be able to achieve our full potential much more rapidly through The Fonda Group, and our entire management group looks forward to the exciting challenges ahead. During the past two years, Fonda has transformed itself from a primarily Eastern manufacturer of paper plates and cups for the consumer and institutional markets to a national producer with a full line of paperboard and tissue based table top consumer products and party goods. The company has also emerged as the major supplier of premium napkins and placemats to the food service industry. The acquisition is expected to close in January 1998.