Sun Capital merging packaging businesses

Published: May 1, 2013 5:57 pm ET
Updated: May 2, 2013 12:18 pm ET

Related to this story

Topics Packaging, Mergers & Acquisitions, Film & Sheet, Extrusion

CHICAGO —Private equity firm Sun Capital Partners Inc. will merge its five plastics packaging businesses, creating what it said will be the sixth-largest plastics packaging company in the world.

The merger will combine Exopack Holding Corp., Kobusch Group, Britton Group, Paragon Print & Packaging Group, and Paccor under one corporate holding company called Exopack Holdings sarl, according to a May 1 Securities and Exchange Commission filing.

The group will have 63 plants, 8,650 employees and aggregate sales of more than $2.5 billion, according to a May 2 news release.

The brand names of all five businesses will remain in use by Luxembourg-based Exopack Holdings.

“It’s an exciting time for us to really take a clean slate and merge these five companies together that we purposely bought,” CEO Jack Knott said by phone.

“It’s truly a merger, not an acquisition, so it gives us the freedom to take the best practices from one company and replicate them in another one. It’s a neat opportunity,” he said.

Sun acquired Exopack in 2005 and picked up its other packaging companies over the last few years.

The companies have been working together, but operating them as separate entities has created “some impediments to being a great global company,” Knott said.

“The way we can better serve our customer base… is removing those impediments,” he added.

According to Exopack, consolidating the companies will create savings of about $65 million per year based on back-office, manufacturing and global procurement synergies.

The company will benefit from a greater range of products and technology; a global manufacturing platform will allow the business to gain share with major consumer goods companies, Exopack said.

The merger combines Spartanburg, S.C.-based Exopack, a manufacturer of advanced coatings, flexible paper and plastic packaging, with four European companies.

Britton Group is a flexible packaging producer in Winsford, England, and Paragon Print & Packaging is a maker of private-label packaging based in Spalding, England.

Both Paccor, the second-largest rigid plastic packaging company in Europe, and Kobush, a producer of custom rigid and flexible packaging systems, are headquartered in Germany.

Exopack Holdings will sell in 70 different countries, largely throughout Europe, the Middle East, North America and Asia.

Having a global presence gives the company more opportunities to grow through both acquisitions and organic growth, Knott said.

“It gives customers more visibility to innovations in other parts of the world and technologies they may not have had access to before,” he added. “It gives them access to someone with a true global footprint so they have reliable and consistent products for their global sales.”

Exopack Holdings will be owned by new parent company, Luxembourg holding company Luxco. Both Luxco and Exopack will be held by funds managed by Sun.

The consolidated company will be led by Knott, who is also CEO of Exopack Holding Corp., and Mike Alger, chief financial officer of the consolidated company and of Exopack.

Knott and Alger will also serve as executive directors of Luxco.

The group will be comprised of two main operation segments — a global flexible division, led by CEO Michael Cronin, and a global rigid business led by Paccor CEO Dieter Bergner.

The merger should be completed within two weeks.

The merger gives Sun Capital more options to eventually exit the business, though the private equity group isn’t currently contemplating a sale, Knott said.


Comments

Sun Capital merging packaging businesses

Published: May 1, 2013 5:57 pm ET
Updated: May 2, 2013 12:18 pm ET

Post Your Comments


Back to story


More stories

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

EU moving closer to rules that will reduce plastic bag use by 80 percent

April 17, 2014 10:54 am ET

European Union countries could have to reduce the use of plastic shopping bags by at least 80 percent by 2019 under draft rules backed by the...    More

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United...    More

Image

Polyair rebuilds from Sandy with help from Process Control

April 16, 2014 4:11 pm ET

Hurricane Sandy gutted Polyair Inter Pack Inc.'s Carlstadt, N.J., plant more than a year ago, and Brian Clawson won't soon forget the devastation.    More

New Tigre, ADS JV aims to open more doors for Tigre in US

April 16, 2014 12:15 pm ET

A new joint venture between Tigre S.A. Brazil, a leading PVC pipe maker, and Advanced Drainage Systems Inc., the world's largest high-density polyethy...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events