Five leading packaging companies Exopack, Britton Group, Kobusch, Paccor and Paragon Print & Packaging are to join forces and operate as one global company under the banner of Exopack Holdings Sarl.
The combined business will have 63 plants, 8650 employees and aggregate revenues of more than $2.5 billion, making it the sixth largest plastics packaging company in the world.
The four companies joining Exopack, the US-based producer of flexible paper and plastic packaging, are based in Europe: Britton Group, a flexible plastic packaging manufacturer; Paccor, the second-largest rigid plastic packaging company in Europe; Kobusch, a producer of tailor-made flexible and rigid packaging systems; and Paragon Print & Packaging, a leader in private label packaging solutions in the UK.
The combination is still subject to certain notice and contractual restrictions, and in particular requires the consent of certain lenders to the packaging companies. It is expected that all required consent will be given within two weeks.
All five packaging companies are affiliated portfolio companies of Sun Capital Partners Inc, however, the brand names of the individual businesses will remain in use by the combined company.
The company is to be led by a strong management team. Jack Knott will serve in the capacity of chief executive officer; Mike Alger will serve in the capacity of the company’s chief financial officer; Dieter Bergner will be CEO of Paccor (global rigid business); and Michael Cronin joins the team as CEO of the global flexibles business.
‘This combination represents a natural next step in a process that began eight years ago to create a global packaging company with a solid foundation for future growth,’ said Marc Leder, co-CEO of Sun Capital Partners. ‘Building on past collaborations between the companies, the combination will immediately achieve synergies and allow the combined company to more effectively pursue global business.’
Mr Knott added, ‘By joining together to form this new entity, we will be better able to serve the needs of our global customers through a manufacturing base spanning North America, Europe, the Middle East and China that enhances our ability to deliver outstanding service. The larger scale will enable us to accelerate the development and commercialisation of new and differentiated products that offer our customers a competitive advantage.’
The company’s expanded footprint means the company will be well positioned to supply diverse end markets, and unlock additional growth opportunities.
‘All five companies have achieved success by introducing market led innovations,’ said Mr Cronin. ‘We strongly believe that this combination will increase that capability by aligning the organisation with how customers want to be served today and by working more closely and strategically as one.’
‘This combination will enable us to invest more efficiently in the new technologies that will deliver the best packaging solutions to our customers. This is vitally important in order to present their products in the most effective and appealing way to drive sales,’ concluded Dieter Bergner, who had served as CEO of Paccor since 2010.
