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Germany's Klöckner Agrees To Buy Linpac To Boost Food Packaging

By Publications Checkout
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Germany's Klöckner Agrees To Buy Linpac To Boost Food Packaging

Klöckner Pentaplast Group, a German maker of packaging materials, has agreed to buy UK firm Linpac Senior Holdings Ltd to bolster its food-container business in its biggest-ever acquisition.

The deal will bolster Klöckner Pentaplast’s annual sales by about $600 million to more than $2 billion, the company said in a recent statement.

Strategic Value Partners, an investment firm focused on distressed companies, controls both Montabaur-based Klöckner Pentaplast and Linpac, which is located in Featherstone, England.

“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,” Wayne Hewett, Klöckner Pentaplast’s chief executive officer, said in the statement.

The acquisition may also help Strategic Value Partners realise plans to list Klöckner Pentaplast in the US, where the hedge-fund and private-equity investor filed for an initial public offering in December. By combining Klöckner Pentaplast and Linpac, the owners and management aim to benefit from growing demand for healthy foods with extended shelf lives.

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Hewett will lead the combined company, which will have about 32 locations across 16 countries and about 6,300 employees. Linpac CEO Daniel Dayan will head the merged entity’s food division, which is gaining more rigid- and flexible-film products through the acquisition.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

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