This particular deal is bananas. Literally.
Coveris Holdings Corp. is acquiring Olefinas SLP SA de CV, an agricultural plastics company with operations in both Guatemala and Mexico.
Olefinas makes a variety of products for the banana industry including tree bags, labels, twine and aging ribbons as well as mulch and fumigation films, insect traps, modified atmospheric packaging and shrink films, Coveris said.
Locations in Guatemala City and San Luis Potosí, Mexico, employ more than 600.
“We consistently look for opportunities to better serve our growing customer base” and expand market reach, Coveris CEO Gary Masse said in news release.
Chicago-based flexible packaging company Coveris calls Olefinas a “pioneer of banana plastics” that produces more than 300 million pounds of products each year.
Along with providing agricultural plastics, the company also serves the industrial and commercial sectors, according to its website.
Coveris, owned by investment firm Sun Capital Partners Inc., also recently acquired Elldex Packaging Solutions, a flexible packaging company in Auckland, New Zealand, from Hellaby Holdings Ltd.
Elldex makes and produces flexible packaging for the meat, dairy, seafood, horticultural and agricultural markets.
A call to Coveris corporate headquarters seeking comment about the Olefinas deal was not immediately returned. But Julien Petitjean, Coveris Global Rigid's Paris-based key account manager, spoke briefly about the deal at Expo Pack 2015 in Mexico City on June 17.
“Globally, we are gaining momentum,” he said, adding that the deal “shows that Coveris is committed to being a global partner in the packaging industry.”
Plastics News' Mexico City-based correspondent Stephen Downer contributed to this report.