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 Mergers & Acquisitions, Packaging, Extrusion, Film & Sheet

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

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Tighter resin prices leading to price hike for PE film

August 29, 2014 11:13 am ET

One of North America's largest film makers is pushing through a polyethylene price increase due, in part, to the tight resin market.    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

Obituary: Frank Nissel, Welex Inc. co-founder

August 28, 2014 1:01 pm ET

Friends, family and business acquaintances will remember Nissel as an urbane, outgoing machinery executive, an expert on extrusion, a globalist who...    More

Image

Pregis, Sealed Air settle film-foam patent dispute out of court

August 28, 2014 1:01 pm ET

A couple of packaging companies are settling their patent fight over film-foam underlayment.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

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

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events