M&As: Constantia Flexibles acquires Propak in Turkey; Walki Group acquires Spanish packaging producer Plasbel

Packaging firm Constantia Flexibles has signed an agreement to acquire the packaging producer Propak located in Dücze, Turkey. Constantia Flexibles’ says Propak is a player in the European packaging industry for the snacks market operating out of one plant with approximately 360 employees and will complement its packaging solutions portfolio. The acquisition elevates Constantia Flexibles to one of the main players in the European snacks market, it adds. Terms were not disclosed.

This acquisition enables strong synergy potentials and is a sizable step in Constantia Flexibles’ film packaging presence in a growing market segment. Propak has delivered a strong historical financial performance. It is highly complementary to Constantia Flexibles’ existing site in Turkey, Constantia ASAS, adding flexo printing capabilities and access to an adjacent market segment. It significantly reinforces Constantia Flexibles position with the key customers in this market and furthermore, increases future potential for business growth.

Pim Vervaat, CEO of Constantia Flexibles, states: “The acquisition of Propak fits perfectly in our Vision 2025 growth strategy and brings Constantia Flexibles a good platform in the growing European snacks market. It will also give us the opportunity to accelerate our more sustainable EcoLam Mono-PE innovation for the salty snacks market. I am looking forward to working with the management team at Propak in helping to bring the company to the next level.”

The transaction is expected to be completed in Q2 2021, pending regulatory approvals.

Meanwhile, in other news, Walki Group has signed a definitive agreement to acquire a majority stake in Plasbel Plásticos S.A.U, a Spanish sustainable packaging solutions provider. Plasbel specialises in the production of recycled and compostable bags and flexible packaging products used in the food and retail sectors. In 2020 Plasbel generated annual sales of about EUR80 million and was employing 290 people.

Plasbel expands Walki’s European footprint with a manufacturing facility of more than 30,000 sq m, located in Murcia, Spain, offering a broad product portfolio of food packaging solutions, in addition to post-consumer recycled and compostable films with applications in the retail and hospitality sectors.

“This acquisition marks an important step for Walki, as part of our strategy to promote circularity and compostability of packaging materials. Plasbel is a great company with a dedicated workforce and superior products in an industry that will see a strong growth in the years to come. We are looking forward to supporting its ambitious journey ahead”, says Leif Frilund, President/CEO of Walki Group. “Plasbel brings not only a strategic expansion to our product portfolio of sustainable alternatives, but also direct access and proximity to blue chip end-user groups”.

“We are excited to become part of Walki’s family and enter into this new phase of growth, with the aim to consolidate our leadership in Spain and further expand Plasbel’s geographical reach. In addition, the complementary R&D capabilities will help the combined entity to become a leading biofilm converter with attractive expansion opportunities across Europe” says Antonio Beltrán, CEO and reinvesting shareholder of Plasbel.

Plasbel will support the continued growth of Walki’s films and bags business and will become part of the global Business Area Consumer Packaging.

The parties have agreed not to disclose the purchase price or the terms of the transaction.

(PRA)

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