M&As: Constantia Flexibles acquires Aluflexpack; IMCD strengthen its coatings and construction business with acquisition of ResChem

Vienna-headquartered Constantia Flexibles has signed an agreement to acquire approximately 57% of the shares of packaging producer Aluflexpack. In parallel, Constantia Flexibles will launch an all-cash public tender offer for all publicly held registered shares of Aluflexpack.The offer is subject to certain terms and conditions, including the outcome of the regulatory process. Terms were not disclosed.

The company is a leading player in the European packaging industry, specialising in foil and film packaging for the Consumer and Pharma markets. Operating out of 14 locations across Europe with over 1,500 employees, the company will perfectly complement Constantia Flexibles’ packaging solutions portfolio.

This acquisition is a sizable step in Constantia Flexibles’ foil packaging presence across market segments. Aluflexpack has delivered a very strong historical financial performance and continues to do so. It is highly complementary to Constantia Flexibles’ geographical footprint, e.g., in Turkey and Poland as well as expanding to countries of Southeast Europe. The acquisition gives access to an extended technology portfolio.

Constantia Flexibles is the world’s third-largest producer of flexible packaging with over 7,150 at 28 sites in 15 countries.

Pim Vervaat, CEO of Constantia Flexibles, states: “This acquisition fits perfectly in our Vision 2030 strategy to position Constantia Flexibles as a leading flexible packaging player in Europe and globally. The combination of our businesses represents a great strategic and cultural fit. It will allow us to better serve our customers through an enhanced sustainable product range supported by a fully integrated technology portfolio whilst extending our geographical reach.”

The material terms and conditions of the offer are described in the pre-announcement of the offer which has been published and is available at https://afp-tender-offer.com.

The transaction is expected to be completed in Q4 2024, pending regulatory approvals.

In other news, IMCD NV, a distribution partner, formulator of speciality chemicals and ingredients, has announced that it has signed an agreement to acquire the business of the speciality distribution company ResChem Technologies Pty Ltd and ResChem Trust in Australia and New Zealand. Terms were not disclosed.

Established in 2007, ResChem specialises in resins, additives and pigments for use in inks, coatings, adhesives and construction applications.

ResChem represents leading global suppliers which are complementary to IMCD's portfolio. ResChem is headquartered in Sydney, Australia, generated a revenue of approximately A$25 million in 2023 with 15 employees and strengthens IMCD's technical expertise with an application laboratory based in Sydney.

"We see steady growth in the coatings industry in Australia and New Zealand with the advancement of innovative and sustainable solutions," remarked Frank Schneider, Global Business Group Director, Coatings & Construction. "With the joining of ResChem, we can leverage their complementary portfolio and technical capabilities to further develop our footprint in the local markets," concluded Schneider.

"This is a wonderful opportunity for our employees to join a leading multinational company and the opportunities for advancement it provides. For our customers and suppliers, we will continue to provide and further improve the high level of service they are used to from ResChem," said Bruce Forder, Managing Director of ResChem Technologies.

The closing of the transaction is subject to customary closing conditions and is expected to take place in the second quarter of 2024.

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