Diversified plastics processor Tekni-Plex Inc. said July 1 it is buying Colombian rigid packaging maker Grupo Phoenix to bolster its capabilities in food and beverage markets and add more Latin American manufacturing capacity.
Wayne, Pa.-based Tekni-Plex said Grupo Phoenix, which has factories in Colombia, Mexico and the United States, will add to its consumer products unit as well as expand offerings in paper packaging. Terms were not disclosed.
"The acquisition enhances our ability to keep food fresher and longer with sustainable packaging solutions," said Brenda Chamulak, Tekni-Plex president and CEO. "We are excited to welcome Grupo Phoenix and its innovative products and people to the Tekni-Plex family."
Grupo Phoenix, which started in Bogota, Colombia, makes rigid plastic containers for a range of consumer markets, including diary, desserts, coffee, beverages and household cleaners. It sells in 30 countries.
In 2012, it attracted equity investment from One Equity Partners, a unit of JP Morgan Chase & Co.
"Combining Grupo Phoenix's entrepreneurial and innovation spirit with Tekni-Plex's global footprint and resources is designed to create a first-class scalable platform for continuous growth," said Alberto Peisach, CEO of Grupo Phoenix.
A Phoenix executive said the deal will also bring its capabilities in paper and other substrates to Tekni-Plex, in addition to plastics.
"Grupo not only has great capabilities in plastics, including PET and PP, but also paper and other sustainable substrates which will be incredibly important to our combined businesses, as we continue our journey to being more material and technology agnostic," said Jaime Lederman, chief operating officer at Grupo Phoenix.
He said the firm has a focus on packaging for products on the outside aisles of stores, like fruits, vegetables and meats, as well as coffee.
"We have a great eye for identifying early how consumers shop the perimeter of the store," Lederman said.
Tekni-Plex noted both the wider range of materials Grupo Phoenix works in, and its Latin American footprint.
"This acquisition plays to strengths of [our] Dolco, Tri-Seal and Action Technologies business units by expanding the range of solutions we offer our customers, leveraging a broader range of materials for sustainability and approaching challenges with a consumer-driven mindset," said Eldon Schaffer, CEO of Tekni-Plex's consumer products division. "This deal also allows us to leverage Grupo's footprint in Latin America and expand our presence in the region."
It marks the 15th acquisition for Tekni-Plex in the last five years.
Phoenix has two factories in Colombia, one in Mexico and two in the United States, in Dublin, Va., and Chandler, Ariz.
Tekni-Plex employs 4,000 people and has manufacturing sites in 10 countries in the Americas, Asia and Europe. It serves a variety of end markets, including medical, pharmaceutical, food, personal care, household and industrial.
Chamulak was named president and CEO in March, succeeding Paul Young, who became chairman of the company's board.
Chamulak joined Tekni-Plex in October as head of its new packaging products division, after working as a senior executive at Jabil Packaging Solutions.