New facility will become the hub for all distribution in Western Europe
Five companies from across the packaging supply chain are to be merged to create a global business operating as Exopack Holdings.
Exopack, a US-based producer of flexible paper and plastic packaging, and advanced coatings, is to be merged with Europe’s Britton Group, PACCOR, Kobusch and Paragon Print & Packaging.
Britton Group is a flexible plastic packaging manufacturer, while PACCOR is the second-largest rigid plastic packaging company in Europe. Kobusch is a producer of tailor-made flexible and rigid packaging systems and Paragon Print & Packaging is a private label packaging systems provider in the UK.
Exopack Holdings will be based Luxembourg and operate 63 plants, employ 8,650 and generate aggregate revenues of more than US$2.5 billion.
All five component companies are affiliates of Sun Capital Partners, Inc. Together, they will form the sixth-largest plastics packaging company in the world. The brand names of the five businesses will remain in use.
Sun Capital Partners is a private investment firm that has invested in 320 companies worldwide with combined sales in excess of US$45 billion.
It invested in Paragon Print & Packaging in December 2012, PACCOR in December 2010, Kobusch in December 2011, Britton Group in April 2011 and Exopack in July 2005.
Sun Capital Partners states that the expanded footprint of the combined company means it will be well positioned to supply diverse end-use markets, and unlock additional growth opportunities, supported by a more robust, diverse and complementary product portfolio.
Jack Knott will serve in the capacity of chief executive officer (CEO) of Exopack Holdings, with Mike Alger named as chief financial officer. Dieter Bergner will be CEO of PACCOR (global rigid business); and Michael Cronin joins the team as CEO of the global flexibles business.
Marc Leder, co-CEO of Sun Capital Partners, said: ‘This combination represents a natural next step in a process that began eight years ago to create a global packaging company with a solid foundation for future growth.
‘Building on past collaborations between the companies, the combination will immediately achieve synergies and allow the combined company to more effectively pursue global business.’
Knott said: ‘By joining together to form this new entity, we will be better able to serve the needs of our global customers through a manufacturing base spanning North America, Europe, the Middle East and China that enhances our ability to deliver outstanding service.
‘The larger scale will enable us to accelerate the development and commercialization of new and differentiated products that offer our customers a competitive advantage.’
‘All five companies have achieved success by introducing market led innovations,’ said Cronin. ‘We strongly believe that this combination will increase that capability by aligning the organization with how customers want to be served today and by working more closely and strategically as one.’
‘This combination will enable us to invest more efficiently in the new technologies that will deliver the best packaging solutions to our customers,’ added Bergner. ‘This is vitally important in order to present their products in the most effective and appealing way to drive sales.’