US packaging market: M&As strengthen the market

The US plastics packaging market is picking up steam with acquisitions in recent weeks. Rigid packaging maker Berlin Packaging is being acquired by private equity firm Oak Hill Capital Partners, from Investcorp, for US$1.43 billion.

Founded in 1898, Chicago-based Berlin Packaging’s broad offering of services includes structural and brand design, worldwide sourcing, warehousing and logistics, and capital financing.

Tyler Wolfram, Managing Partner at Oak Hill, said it is a “high-calibre business experiencing double-digit growth and targeting a large addressable market opportunity”, while partner Brian Cherry said, “Berlin Packaging is a juggernaut that already grows multiple times faster than the packaging industry, and we look forward to further bolstering the company’s best-in-class business model and customer focus to continue its growth trajectory.”

Meanwhile US packaging company Coveris, purported to be the sixth largest global plastic packaging company in the world that was formed by the combination of Exopack, Britton Group, Kobusch, PACCOR and Paragon Print & Packaginhas, is acquiring Learoyd Packaging (Holdings), one of the UK’s leading flexographic print specialists supplying flexible packaging solutions. Terms of the transaction were not disclosed. Established in 1976, the Burnley-based business, initially supplied paper and plastic bags to the textiles industry, before focusing its strategy on the fast-moving food packaging market to achieve sales in excess of £20 million in 2013.

Coveris’ says it will strengthen its UK flexible packaging offering through advanced processes and technologies in addition to providing access to new customer and product markets.

This announcement follows Coveris’ recent acquisition of St Neots, a leading manufacturer of carton board solutions for the food-to-go and convenience markets. With aggregate revenues of more than US$2.8B, Coveris manages 64 plants across North America, Europe, the Middle East, and China. Coveris is an affiliated portfolio company of Sun European Partners.

Yet another announcement comes from Sonoco, one of the largest diversified global packaging companies, that is acquiring Germany-based composite cans/drums and rigid plastic containers maker Weidenhammer Packaging Group for US$383 million. The final consideration is subject to a normal adjustment of net working capitall.

Headquartered in Hockenheim, Weidenhammer has approximately 1,100 employees and operates 13 production facilities, including five in Germany, along with individual plants in Belgium, France, Greece, The Netherlands, UK, US, Chile and Russia. Weidenhammer produces rigid plastic containers using thinwall injection moulding and IML technology. Markets served by the company include processed foods, powdered beverages, tobacco, confectionery, personal care, pet food, pharmaceuticals and home and garden products.

With the acquisition, Sonoco expects to increase its global consumer-related packaging and services business to approximately US$2.8 billion in annual sales or approximately 53% of its combined revenue of approximately US$5.3 billion. In addition, the combination is expected to increase Sonoco's net sales in Europe to approximately 21% of total sales.

Weidenhammer's projected 2014 sales are expected to be approximately US$327 million, with projected EBITDA expected to be approximately US$56 million.

Sonoco also expects to provide its global consumer product customers with packaging expertise throughout North America and Europe, and creates a strong presence in the emerging markets of Southeast Asia, China, Eastern Europe and South America.


Home | Terms & Conditions | Privacy Policy | Contact | Webmail | Site Map

Copyright (c) 2014 All rights reserved.