The packaging industry will soon have its sixth largest global plastic packaging company in the world. The venture happens to be an initiative by Sun Capital, who has planned to merge Exopack, Britton Group, Kobusch, Paccor and Paragon Print & Packaging under the banner of Exopack Holdings, to be headquartered in Luxembourg. It will be split into two main operating segments- a rigids divison under Paccor Chief Executive Dieter Bergner and a flexibles divison, headed by Michael Cronin. Despite the merger, the companies will retain their respective brandnames. The business will have 63 plants across North America, Europe, the Middle East and China, 8,650 employees and aggregate revenues of more than US$ 2.5B.
The combined company is expected to be an established leader in the development, manufacture, and sourcing of rigid and flexible plastic packaging, as well as coatings solutions for various consumer and industrial end-use markets. Jack Knott, who currently leads Exopack, will be chief executive of the consolidated group.
Speaking on the occasion Marc Leader, Co- CEO of Sun Capital Partners said “This consolidation represents the next step in a process that started eight years ago to create a global packaging company with a strong base for future growth. Building on past collaborations between the companies, the amalgamation will immediately achieve synergies and allow the company to more effectively pursue global business.”
“All five companies have achieved success by introducing market led innovations. We strongly believe that this consolidation will increase that capability by aligning the organization with how customers want to be served today,” said Michael Cronin.
Jack Knott from Exopack added, that the merger of the businesses and the resulting scale would create new choices for both customers and the business itself. It would be a company with no impediments. It will also give them a broader global footprint and a manufacturing platform that can meet the requirements of the global consumer goods companies, apart from allowing them to find and roll out innovations. Dieter Bergner, emphasised “This grouping will enable us to invest more efficiently in the new technologies that will deliver the best packaging solutions to our clientele, which is crucial to drive sales.”
The merger is subject to certain notice and contractual restrictions, and in particular requires the consent of certain lenders to the packaging soon.