Chesapeake and MPS to merge

Chesapeake and Multi Packaging Solutions (MPS) are to merge to create a global supplier of print-based specialty packaging.

The combined company will supply a broad range of packaging, including printed folded cartons, labels, inserts/leaflets, rigid boxes and specialist packaging for the pharmaceutical and healthcare, consumer, personal care, confectionery, spirits and multimedia end markets. 

Upon completing the merger, ownership in the combined company will be split evenly between funds managed by global alternative asset manager The Carlyle Group and Chesapeake’s management, who currently collectively own 100 percent of Chesapeake, and investment funds advised by Madison Dearborn Partners and management of MPS, who currently collectively own 100 percent of MPS. 

It is anticipated that the merger will close during the first quarter of 2014.

The combined company will have sales of more than 1.4 billion USD on a pro forma basis, employ over 7,000 people throughout the world and operate from more than 50 manufacturing facilities on three continents. The vast majority of operations are divided between the US and nine countries in Europe. The combined company will also have a growing presence in emerging markets, including from an existing facility in China.

Marc Shore, current chief executive officer (CEO) of MPS, has been appointed CEO of the combined company. Mike Cheetham, Chesapeake CEO, and Dennis Kaltman, current MPS president, will be co-presidents and will serve with Shore on the executive committee responsible for overseeing the integration and growth of the combined company.

Shore said: ‘Joining these two companies will greatly benefit our customers and employees. The combined manufacturing footprint and technological capabilities are truly unique and will position us to match our customers’ needs with a broader range of products and operational flexibility. 

‘The ability to produce these goods and services in the US, Europe and China will also give our customers consistency on a global basis.  We are very excited to bring these two families of passionate, hardworking and committed employees together as they will ensure our future success.’

Cheetham said: ‘I’m excited about the prospects this transaction offers for our collective customers, employees and suppliers. Both companies have benefited from a strong ongoing investment program and will continue to invest in order to deliver on the considerable growth opportunity this merger presents. 

‘Our extensive global network of dedicated operations provides our customers with a strategic partner for their long-term needs.’

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