Stonington — The plastic-extrusion company Davis-Standard, a major employer in town, has notified employees that its manufacturing plant on Extrusion Drive in Pawcatuck has been sold to a real estate investment trust that will lease back the site for up to 40 years.

The so-called sale and lease-back agreement, a common business tactic these days, will "increase our financial flexibility" and "reinforces our commitment" to the Pawcatuck community, said chief executive Jim Murphy in a note to employees last week. He promised no changes in ownership or staffing as a result of the Oct. 27 move to sell its property to Dallas-based Spirit Realty Capital.

"It seems pretty positive from my standpoint," First Selectman Rob Simmons said Tuesday, a day after learning of the move. "It suggests to me they're going to be here for a while."

"We have zero plans to consider walking away from this location," Murphy said in a phone interview Tuesday. "It's been well conveyed to employees."

Murphy said current commercial real estate values make the sale attractive, allowing Davis-Standard to accumulate cash that can be reinvested in the business while keeping expenses fixed over an extended period of time.

He noted that Davis-Standard announced earlier this year $1.3 million in grants from the state Department of Economic and Community Development to be used to expand its manufacturing capability by 15,000 square feet, adding up to 30 new jobs. The company currently employs more than 400.

"As a company, we have assets, and we need to make the best use of those assets," Murphy said.

Murphy, who said he wasn't sure how many acres or parcels were involved in the sale, noted that the company signed a 20-year lease with options for 20 more years. Town Clerk Cynthia Ladwig said the company had not yet filed a deed, but online records show the 32-acre property was last assessed at $5.35 million.

Simmons said sales with lease-backs are essentially creative financing for companies that prefer not to be tied up with real estate concerns.

"I think it makes a certain amount of sense for a large corporate entity to take capital out of real estate and put it into R&D and development of new products," Simmons said. "I don't have any reasons to be concerned."

Davis-Standard's largest worldwide site is in Pawcatuck, and the company has roots in the region dating back to 1848. The company has other manufacturing sites and subsidiaries elsewhere in the United States, Europe and Asia.

Davis-Standard entered into a similar sale and lease-back agreement at its site in Fulton, N.Y.

l.howard@theday.com