M&As: Nefab acquires US thermoformer; Avantus divests composites business to focus on C-Class components

Sweden’s Nefab Group has acquired US-based Reflex Packaging Group, a leading company in sustainable thermoformed cushioning, to further strengthen its commitment to save resources in supply chains. Reflex Packaging will continue to operate as separate entities within the Nefab Group. Terms were not disclosed.

Founded in Northern California in 1999, Reflex Packaging started with the revolutionary idea to provide a replacement for traditional packaging that could outperform foam while using 100% recycled and ocean bound plastic as the raw material source for its products. It has operations in Americas, Europe, and Asia. Reflex cushions are now designed and manufactured at 16 global productions sites.

"The market demand for sustainable cushioning solutions in industrial packaging is increasing fast. Reflex Packaging's state-of-the-art cushioning trays, made from 100% recycled and ocean bound plastic, combined with Nefab's global presence, will make sustainable cushioning solutions available for the market worldwide," says Staffan Pehrson, President/CEO of Nefab Group.

The Reflex Packaging acquisition, in addition to the earlier communicated European acquisition of Szkaliczki in 2020, positions Nefab to be the world's leading company in sustainable thermoformed cushioning. Nefab will now be better equipped to address customer demands in high growth markets such as Electronics, Datacom, Telecom, and Lithium Batteries.

"Our customers are demanding more cost efficient and sustainable supply chains, and the use of thermoformed cushioning enables significant savings – both in cost and CO2 emissions. As an example, compared to foam, Reflex Packaging's cushioning typically has 50% lower CO2 output, better box shipping ratios, and saves up to 85% in shipping and warehouse space. We are excited to welcome over 200 employees from Reflex Packaging to Nefab, and to make their unique competence available to our customers worldwide!" Pehrson concludes.

With the acquisition of Reflex Packaging, the Nefab Group will have over 4,000 employees spread across 35 countries, with a yearly turnover of nearly 7 BSEK.

Meanwhile in other news, Avantus Aerospace continues its transformation into a 'pure-play' C-Class parts manufacturer, having recently completed the divestiture of its non-core composites business line. Two US-based structural composites companies – Performance Plastics (San Diego, CA) and Angeles Composite Technologies (Port Angeles, WA), were sold to JW Hill Capital, an Arizona-based private equity firm. SDM Composites (Hermosillo, Mexico) was sold to Groupe Latécoère, headquartered in Toulouse, France. The Avantus Group has facilities in the US and Europe and provides shims, detailed parts, specialty fasteners, precision machining, and elastomer gaskets to the aerospace and semiconductor industries.

Brian Williams, CEO of Avantus, said: "As we position ourselves for the ramp-up in aerospace production, Avantus is focused on growing our core businesses and capabilities. We're certain that the new homes for our composites companies will likewise give them exceptional focus for growth and expansion."

Avantus acquired three specialty fastener companies over the last 22 months (including two during the pandemic) – Fastener Technology Corporation, California Screw Products, and Fastener Innovation Technology – and will continue to expand its range of C-Class components, both organically and via further acquisitions. With tremendous emphasis on operational excellence and customer service, the acquired accompanies have already achieved industry-leading performance in terms of quality, lead-times, on-time delivery, and customer responsiveness.

Avantus Aerospace is owned by Inflexion Private Equity and Auctus Industries. Inflexion is a leading European mid-market private equity firm, investing in high growth, entrepreneurial businesses with ambitious management teams and working in partnership with them to accelerate growth. Auctus Industries is a specialist investor in aerospace businesses.

(PRA)

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