Klockner Pentaplast Group (KP) and LINPAC Senior Holdings Limited (LINPAC) announced earlier this month that KP will buy Linpac for an undisclosed sum.
According to KP, “the transaction will create a global leader in the rigid and flexible film market, with combined annual revenues exceeding $2 billion.”
KP is headquartered in Germany and a global leader in rigid plastic film and packaging solutions. LINPAC, which has headquarters in the UK, is a significant film producer and converter for food packaging in Europe.
Both companies have Australian subsidiaries, and LINPAC has built a strong reputation particularly in the meat sector in Australia.
LINPAC's expertise in the food sector, and particularly with extended shelf life solutions, would have been sought after by KP.
KP said that by bringing together "two of the most innovative firms in the film and packaging industry" the group would create "a true R&D powerhouse”.
Wayne M. Hewett, CEO of KP, said, “This is a highly complementary acquisition that will help KP expand our technological capabilities and presence into the food industry and the rigid and flexible film market, as well as further develop our offerings in end markets such as pharmaceuticals, food and beverage, and consumer and industrial products. KP will be enriched by LINPAC’s innovations, adjacent products and know-how. We are excited about the new opportunities that lie ahead of us.”
The combined company will have 32 locations across 16 countries with about 6,300 employees. KP’s existing global footprint with operations on six continents will greatly accelerate LINPAC's geographic expansion ambitions, particularly in the Americas.
Daniel Dayan, CEO of LINPAC, said, “We are excited to join forces with KP and believe this transaction will significantly accelerate LINPAC's geographic expansion. Merging these two market leaders into one company will create strong opportunities for all involved and we look forward to working together.”
The transaction is subject to approval by certain regulatory authorities, as well as information processes with employee representatives in certain jurisdictions. It is expected to close in the summer of 2017.
