M&As: Faerch to acquire packaging firm Paccor; Perstorp strengthens position in resins/coatings with acquisition of DMPA acid biz from GEO

Danish rigid food packaging supplier Faerch, which is a part of the A.P. Moller Group, is to acquire Germany-based dairy packaging firm Paccor Packaging for an undisclosed sum. The company will acquire Paccor from its current owner, New York-based investment firm Lindsay Goldberg, which acquired Coveris Rigid in August 2018 and renamed it Paccor.

In a statement, Paccor adds, “The acquisition combines two matching companies that together will represent a strong force in the pan-European market. The transaction is subject to customary closing conditions and regulatory approval and is expected to close during the first half of 2022. The Paccor UK business including the two production sites are not part of the transaction and will remain with Lindsay Goldberg.”

With more than 3,700 employees in 18 countries, Paccor says it is a global player in the packaging industry.

Founded in 1969, with headquarters in Holstebro, Denmark, Faerch is a European manufacturer of sustainable food packaging solutions within the Ready Meals, Protein, Food-to-Go and Dairy segments. With CPET and MAPETII, Faerch offers an extensive range of food packaging solutions for all relevant applications that is food-safe and truly circular, it adds.

Faerch employs more than 2,200 people, spread across 16 production sites in Denmark, Great Britain, France, Italy, Poland, Spain, the Czech Republic, and the Netherlands.

Andreas Schütte, CEO of Paccor adds, “Faerch’s unique integrated recycling capabilities offer fully new opportunities to accelerate the transition towards circular packaging solutions, while combining the two companies’ dedication to innovation and investments in R&D.”

In other news, Swedish chemical firm Perstorp has acquired GEO’s Di-Methylolpropionic Acid [DMPA] business, further emphasising its commitment as the sustainable specialty solution provider within the resins and coatings segment. Terms were not disclosed.

This acquisition further accentuates the company’s strategic presence in PU and Alkyds dispersions - a vital step to becoming a specialty leader in various waterborne coating markets. The acquisition significantly bolsters Perstorp’s position within the Di-Methylpropionic acid platform, allowing further investments into innovation and additional capacities over time. Perstorp’s strategy is to support its customers and wider society by driving the shift towards renewable raw materials and sustainable technologies. This acquisition serves both of these dimensions.

“Our strategy is to be the sustainable solutions provider within our focus segments, of which resins and coatings is one. Additives for waterborne resins and coatings technologies are a key area for future growth, and we see great potential in the market for Bis-MPA together with the acquired DMPA. This acquisition will both allow further development of our offering and enable long term investments to safeguard future availability,” says Jan Secher, President/CEO of Perstorp Group.

Bis-MPA has represented a key building block in Perstorp’s offering over the past 20-plus years. The product enables a technology shift from solvent to waterborne formulations within markets such as Polyurethane dispersions, PUDs, and waterborne Alkyds.

As of January 2022, Perstorp resumes control of GEO’s DMPA business. GEO will continue to produce DMPA exclusively for Perstorp in Allentown, Pennsylvania. Perstorp and GEO are jointly committed to ensuring a smooth business transition process, focusing on security of supply and service.

CPS Performance Materials, the parent company of GEO, is a diverse specialty chemical company with businesses serving multiple end markets including pharmaceuticals, nutrition, specialty coatings and dispersants used in a broad range of applications.

(PRA)

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