CTI to sell Flexo subsidiary, close Lake Zurich facility

LAKE BARRINGTON - CTI Industries Corp. said it plans a number of cost-cutting moves, including selling its Mexican subsidiary and closing a facility in Lake Zurich.

The company plans to focus its business on profitable, growth-oriented product lines and locations, according to a company statement. The manufacturer of foil and latex balloons, vacuum sealing systems and laminated and printed films said operations at the Lake Zurich facility would be moved to another "lower cost" location.

Its subsidiary, Flexo Universal S.A. de R.L de C.V., will be sold to investors that include Flexo management for an undisclosed amount. Sale proceeds would be used primarily to reduce CTI's outstanding debt, the company said.

The multimillion dollar reduction plan is part of debt-reduction strategy for the company. The Company is also looking to raise money to refinance existing debt and fund immediate operational, financial, and strategic initiatives.