Packaging firm SIG has announced that it has completed the acquisition of Evergreen Asia, the Asia Pacific chilled carton operations of Pactiv Evergreen Inc.
SIG acquired Evergreen Asia for an enterprise value of $335 million (€328.7 million) and it expects to realise run-rate cost synergies of approximately €6 million.
The business will be fully consolidated from the beginning of August 2022, SIG added.
'An Exciting Addition To Our Business'
Lidong Fan, president and general manager of Asia Pacific North, said, “Evergreen Asia is an exciting addition to our business. With chilled carton packaging, we can offer our customers an even more comprehensive range of products.
"Together, we will also continue to innovate and provide safe and sustainable packaging that consumers expect today and in the future."
In January of this year, SIG agreed to acquire Evergreen Asia, which operates production facilities in mainland China, Taiwan and South Korea.
Evergreen Asia supplies filling machines, cartons, closures and after-sales service in the chilled segment, covering dairy and non-carbonated soft drinks.
In the 12 months ended 31 December 2021, revenue at Evergreen Asia amounted to approximately €135 million and adjusted EBITDA was around €24 million.
New Growth Opportunities
The acquisition will provide SIG new growth opportunities in Asia, where demand is growing strongly, especially for fresh milk in China.
Evergreen Asia will enable SIG to expand its existing customer relationship with national dairies and provide access to new customers at a regional and local level.
SIG added that it intends to leverage its R&D know-how, innovation capabilities and marketing expertise to introduce more innovative packaging formats in this market segment.