Klöckner Pentaplast acquires Linpac; creates US$2 bn company

German rigid film/packaging provider Klöckner Pentaplast Group (KP) is acquiring film producer and converter for food packaging Linpac Senior Holdings Ltd and its direct and indirect subsidiaries. Financial details were not disclosed. The transaction will create a global leader in the rigid and flexible film market, with combined annual revenues exceeding US$2 billion.

Strategic Value Partners, an investment firm, controls both Montabaur-based KP and Linpac, which is located in Featherstone, UK. The acquisition is also expected to help Strategic Value Partners realise plans to list KP in the US, where the hedge fund and private equity investor filed for an initial public offering in December.

Wayne M. Hewett, CEO of KP, said, “This is a highly complementary acquisition that will help KP expand our technological capabilities and presence into the food industry and the rigid and flexible film market, as well as further develop our offerings in end markets such as pharmaceuticals, food and beverage, and consumer and industrial products. KP will be enriched by Linpac’s innovations, adjacent products and know-how. We are excited about the new opportunities that lie ahead of us.”

Daniel Dayan, CEO of Linpac, said, “We are excited to join forces with KP and believe this transaction will significantly accelerate Linpac’s geographic expansion. Merging these two market leaders into one company will create strong opportunities for all involved and we look forward to working together.”

The combination of KP’s film production with Linpac’s film production and conversion capabilities will create a one-stop-shop providing complete packaging solutions to customers, said the companies. The acquisition of Linpac will further strengthen KP’s customer-centric business approach, a key pillar of the company’s strategy.

The acquisition will also enable KP to expand its technological capabilities further into the rigid and flexible film market. This market benefits heavily from megatrends including customers’ desire for healthy and safe food with an extended shelf life.

KP says it will also be able to leverage the combined and diverse customer base to develop products, solutions and design capabilities that are tailor-made to address customer needs for further growth potential.

Together, KP and Linpac will have 32 locations across 16 countries with about 6,300 employees. KP’s existing global footprint with operations on six continents will also allow Linpac to expand in the Americas.