CLARCOR Inc. CLC exited its legacy packaging business with the sale of J.L. Clark, Inc., its packaging subsidiary, to CC Industries, Inc., an affiliate of Chicago-based Henry Crown and Company. The company now intends to focus solely on its filtration business.
With annual revenues of about $77 million, J.L. Clark is involved in the designing and manufacturing of specialty metal and plastic packaging that caters to a broad range of consumer-product customers.
The 111 year-old business is headquartered in Rockford, IL, and has significant manufacturing facilities in Lancaster, PA.
Over the last four decades, CLARCOR has evolved into a leading global diversified filtration company. The divestiture will enable CLARCOR to sharpen focus on its core filtration business. On the other hand, J.L. Clark will fit in much better with CC Industries and will be able to leverage opportunities to grow.
CLARCOR has been active on the acquisition front and has been buying companies that align with its business strategies. In Dec 2014, it acquired Filter Resources Group, which manufactures and distributes filters to the petrochemical and refining industries in the Texas Gulf Coast and Louisiana region. The acquisition enabled CLARCOR to deliver better filtration solutions for refineries and petrochemical customers throughout the Gulf Coast.
The company had also acquired General Electric Company’s GE air filtration business, the Stanadyne fuel filtration business, and the Bekaert advanced filtration business, in order to augment its market share and revenues.
CLARCOR presently carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the sector that look promising include Carlisle Companies Incorporated CSL and Hitachi Ltd. HTHIY, both holding a Zacks Rank #2 (Buy).
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