Europe's flexibles sector has seen new consolidation, with Austria's Constantia Packaging AG taking a majority stake in the packaging business of Hueck Folien GmbH & Co. KG of Pirk, Germany.
Constantia will take over one U.S. and three European Hueck Folien-run food and pharmaceutical packaging plants. The sites include the Fromm Pharmafolien GmbH facility in Remshalden, Germany; a Hueck Folien GmbH unit in Weiden, Germany; Hueck Folien SA in Louvain-La-Neuve, Belgium, and the Hueck Foils LLC operation in Wall, N.J.
The plants make flexible products including pharmaceutical pouches, retortable lidding and strip packs as well as high-barrier films, aluminum/paper laminates and lidding.
Constantia's Flexibles business unit is buying 70 percent of family-owned Hueck's packaging division shares, with an option to buy the remaining stake later, according to Hueck Folien.
A fourth Hueck flexibles business that makes technical and security films in Baumgartenberg, Austria, is not included in the deal.
Last year, Hueck's flexibles division employed 840 and generated annual sales of around 160 million euros ($199 million).
``This acquisition positions us to offer our customers new technologies as well as a broader and enhanced product range,'' said Constantia Flexibles Chief Executive Officer Jan Homan.
The deal also expands the firm's geographic spread, a spokesman added. Constantia's place in Eastern Europe complements Hueck's North American strength.
Vienna, Austria-based Constantia Packaging has two main divisions manufacturing corrugated board and flexible products. It employs around 6,000 at operations in 18 countries. In the United States, the company owns foil and laminated film extruder H&N Packaging Inc. in Colmar, Pa., and cast polypropylene film maker Multifil Packaging Corp. in Elgin, Ill.
The company also has a plant in Taicang, China.
Constantia Packaging's 2006 sales are estimated at more than 1 billion euros ($1.26 billion). The company serves the food, beverage, pharmaceutical and automotive industries.