November 20, 2012
WEIRA, GERMANY (Nov. 20, 12:25 p.m. ET) — Two European plastic pallet manufacturers — Cabka GmbH and Innova Packaging System NV — have merged under the newly-founded Cabka Group.
Terms of the deal were not disclosed. Until a joint brand is announced, the Cabka and IPS labels will remain intact, according to a news release.
The merger includes the St. Louis-based Cabka North America Inc.
Combined, the two companies will be a broad-based, international provider of plastic pallets, boxes and pallet boxes. Both companies have complementary product portfolios and production sites: Cabka specializes in inexpensive, one-way pallets for exports, while IPS focuses on higher-priced multi-way pallets.
Along with injection molding operations, Cabka has mixed plastics recycling lines as its plants in Weira, Germany; Valencia, Spain; Toronto and St. Louis.
IPS, based in Ypres, Belgium, serves the Benelux countries — Belgium, the Netherlands and Luxembourg — as well as the United Kingdom, Ireland, France and Spain.
The merger will enable both companies to improve their market positions and effectively innovate, according to the release.
"We want to organically grow together by way of a strong range and continuous innovation-based expansion," said Gat Ramon, a Cabka Group director, said in the release.
Cabka Group’s plans include a new production line, complete with recycling plan for mixed plastics, in the vicinity of Ypres, Ramon said.
The combined company will have 390 employees, two thirds of which will come from Cabka and one third from IPS. No changes to the overall employee count are planned, according to the release.