M&As: Berlin’s acquisition of Dutch Novio to enhance presence in Europe; Alpek buys Lotte Chemical’s UK PET plant

US-based hybrid packaging supplier Berlin Packaging, a US$2.6 billion global full-service supplier of glass, plastic, and metal containers and closures, is to acquire Netherlands-based Novio Packaging Group, to strengthen its European plastic offering, enhance its expertise in personal care, pharmaceutical, food, and sports nutrition verticals, and expand its northern European footprint.

Berlin Packaging's European companies are comprised of specialty glass market leader Bruni Glass, closure experts Bruni Erben, and four other companies acquired in 2019. The addition of Novio Packaging to Berlin Packaging's existing European companies creates a unique packaging supplier for glass, plastic, and metal containers and closures with a full suite of income-boosting services designed to grow customers' net income.

With several offices across northern Europe and approximately 160 employees, Novio Packaging has an impressive organic and acquisitive growth track record, including completing four acquisitions in the past two years.

Novio Packaging marks Berlin's 13th overall acquisition since 2010 and fifth in 2019, adding strategic locations throughout Northern and Southern Europe. This rapid expansion broadens the company's global reach, which includes 1,300+ employees, 130+ locations in North America, and operations in nine European countries, China, and South Africa.

Synergies include Berlin’s design studios on two continents, including Studio One Eleven, the in-house innovation consultancy, offering complete structural package and brand design, all at no charge, and the Bruni Glass Innovation Center's custom lineup of 3,000+ premium glass SKUs. Novio Packaging has created thousands of bespoke packaging solutions for some of Europe's largest companies with exclusive designer lines.

Both Berlin and Novio Packaging are ISO 9001 certified, demonstrating a strong quality assurance commitment. In addition to their dedicated Quality Service Division, Berlin Packaging boasts an industry-leading 184 consecutive months of 99+% on-time delivery for customers. Novio Packaging has achieved the BRC Global Standard for product integrity during storage and distribution and is EcoVadis Gold certified, demonstrating its commitment to sustainability.

Meanwhile, in other news, Mexican petchem firm Alpek, a unit of conglomerate Alfa, has signed an agreement with Lotte Chemical Corporation to acquire a 100% stake in Lotte Chemical UK, which owns and operates a 350,000 tonnes/year PET facility in Wilton, UK.

"This acquisition is well aligned with Alpek’s growth strategy, creating substantial value by integrating the asset into our global polyester footprint, marking our first acquisition outside of the Americas, and growing our current worldwide PET capacity to 2.8 million tonnes," said José de Jesús Valdez, Alpek’s CEO.

"Moving forward, our team is focused on executing a seamless integration to capitalize on existing momentum and capture synergies." The terms of the agreement have not been disclosed, and the acquisition is expected to be completed in the fourth quarter of 2019 subject to customary government approvals.

(PRA)

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