Tuesday, June 13, 2000

Tristate Summary


American to buy gift-wrap firm


        American Greetings Corp. has agreed to acquire a Tennessee-based gift wrap and packaging supplier, expanding the product line and distribution of its existing gift-wrap unit.

        The deal to buy CPS Corp., a subsidiary of Fox Valley Corp. holding company, is pending regulatory approval. American did not release the purchase price.

        American Greetings said in a statement it expects the addition of CPS to complement its Plus Mark seasonal gift wrap and boxed card unit and expand it into new channels including fund raising and in-store gift wrap. The two companies have little customer overlap.

        CPS operates manufacturing and distribution facilities in Franklin, Tenn., and Henderson, Ky. Plus Mark operates a plant in Greeneville, Tenn.

P&G to buy gas in Internet auction
        In an effort to thwart some of the rising costs that preceded former chairman and CEO Durk Jager's surprise resignation last week, Procter & Gamble Co. has announced it will buy more than $100 million worth of natural gas in an Internet auction.

        More than 50 natural gas producers and energy marketers are expected to bid on a project to supply P&G's tissue and towel plants with natural gas, beginning July 1.

        P&G's purchase of natural gas from the lowest bidder in the auction is expected to save the company between 1 percent and 5 percent of its total natural gas purchases, said Mark Jergens, CEO of EnergyGateway.com, which is conducting the auction.

Hoover workers OK new contract
        Hourly workers at the Hoover Co. in North Canton averted a strike by approving a new five-year contract Sunday.

        Members of the International Brotherhood of Electrical Workers Local 1985 voted 1,510 to 206 to ratify the agreement.

        The contract includes hourly wage increases and improvements in the pension plan, other benefits and job security, said Jim Repace, local president.

        In addition to a 45-cent wage increase for all workers, those with seniority will get raises of 50 cents to $1.50 an hour.

        — From staff and wire reports

       



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- Tristate Summary