A cutting apparatus including an apparatus frame and a cutting station, for forming interconnected bags, is provided. The cutting station includes a rotary anvil having an axis of rotation and mounted to a first frame structure, a rotary cutting die disposed adjacent to said rotary anvil and having an axis of rotation parallel to said first axis of rotation, said rotary cutting die including a rotatable cylindrical shaft carrying a die blade, said rotary cutting die being mounted to a frame structure, and an adjustment mechanism for varying the distance between said anvil and said cutting die, said mechanism including a rotatable spindle having threaded portions of different pitch. A first threaded portion engages a threaded portion of said first or said second frame structure and said second threaded portion engaging a threaded portion of said apparatus frame.