News: Rotherham packaging business acquired
The Rotherham operations of a multinational packaging manufacturer are set to be boxed up in a $1 billion takeover deal.
Sweden's AR Packaging is one of Europe's leading companies in the packaging sector with net sales of more than €900 million, 5,500 employees and 30 factories in 13 countries. It employs 40 people at a factory at Aldwarke, one of three in the UK.
Graphic Packaging Holding Company, a leading vertically-integrated provider of sustainable fiber-based consumer packaging solutions listed on the New york stock exchange, and CVC Capital Partners Fund VI, has announced a definitive agreement to acquire AR Packaging Group AB for approximately $1.45 billion in cash, subject to customary adjustments.
After working at A&R's Chesterfield site that closed in 2003, Paul Nixon bought the assets and equipment and went on to establish SP Containers in 2006 with Steve Crane as commercial director. A move to Aldwarke in 2011 was followed by A&R taking up a majority stake in the company which specialises in paper cups, lids and tubes for FMCG customers.
The global firm has continued to grow and last year saw its seven brands combine to become AR Packaging. Backed by CVC Capital Partners, a number of acquisitions of its own followed, before Graphic Packaging announced its mega deal.
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AR Packaging has a large customer base of established international companies including regional and local customers in more than 50 countries globally. The company develops and produces carton-based and flexibles packaging for many blue-chip and local companies in for instance the pharmaceutical, beauty, food and confectionery segments.
Graphic Packaging is based in Atlanta, Georgia and is a leading provider of sustainable fiber-based packaging solutions for a wide variety of products to food, beverage, foodservice, and other consumer products companies.
Michael Doss, Graphic Packaging’s President and CEO said: "AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe. Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions with long histories of innovation and creative packaging design.
"The large, distributed footprint of AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits strengthening our combined presence and ability to service customers throughout Europe and globally. We are pleased to welcome the AR Packaging team as we work together to further advance our commitment to sustainable packaging solutions for global consumers in support of the move to a more circular economy."
AR Packaging’s President and CEO, Harald Schulz, said, “I am proud of the progress we have made in establishing a clear strategy and building AR Packaging into a respected provider of packaging solutions. I want to thank CVC for their support in those efforts over the last five years.
"Graphic Packaging’s shared approach to customer service and deep focus on providing innovative, sustainable solutions closely aligns with how we operate our own business, making them an ideal partner. The ability to leverage beneficial value chain integration, from paperboard manufacturing to carton converting, provides increased possibilities to offer sustainably optimized solutions to our customers. Our team looks forward to joining with the Graphic Packaging team to become the premier global provider of sustainable fiber-based packaging solutions.”
A&R Packaging website
Images: AR Packaging
Sweden's AR Packaging is one of Europe's leading companies in the packaging sector with net sales of more than €900 million, 5,500 employees and 30 factories in 13 countries. It employs 40 people at a factory at Aldwarke, one of three in the UK.
Graphic Packaging Holding Company, a leading vertically-integrated provider of sustainable fiber-based consumer packaging solutions listed on the New york stock exchange, and CVC Capital Partners Fund VI, has announced a definitive agreement to acquire AR Packaging Group AB for approximately $1.45 billion in cash, subject to customary adjustments.
After working at A&R's Chesterfield site that closed in 2003, Paul Nixon bought the assets and equipment and went on to establish SP Containers in 2006 with Steve Crane as commercial director. A move to Aldwarke in 2011 was followed by A&R taking up a majority stake in the company which specialises in paper cups, lids and tubes for FMCG customers.
The global firm has continued to grow and last year saw its seven brands combine to become AR Packaging. Backed by CVC Capital Partners, a number of acquisitions of its own followed, before Graphic Packaging announced its mega deal.
Advertisement
AR Packaging has a large customer base of established international companies including regional and local customers in more than 50 countries globally. The company develops and produces carton-based and flexibles packaging for many blue-chip and local companies in for instance the pharmaceutical, beauty, food and confectionery segments.
Graphic Packaging is based in Atlanta, Georgia and is a leading provider of sustainable fiber-based packaging solutions for a wide variety of products to food, beverage, foodservice, and other consumer products companies.
Michael Doss, Graphic Packaging’s President and CEO said: "AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe. Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions with long histories of innovation and creative packaging design.
"The large, distributed footprint of AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits strengthening our combined presence and ability to service customers throughout Europe and globally. We are pleased to welcome the AR Packaging team as we work together to further advance our commitment to sustainable packaging solutions for global consumers in support of the move to a more circular economy."
AR Packaging’s President and CEO, Harald Schulz, said, “I am proud of the progress we have made in establishing a clear strategy and building AR Packaging into a respected provider of packaging solutions. I want to thank CVC for their support in those efforts over the last five years.
"Graphic Packaging’s shared approach to customer service and deep focus on providing innovative, sustainable solutions closely aligns with how we operate our own business, making them an ideal partner. The ability to leverage beneficial value chain integration, from paperboard manufacturing to carton converting, provides increased possibilities to offer sustainably optimized solutions to our customers. Our team looks forward to joining with the Graphic Packaging team to become the premier global provider of sustainable fiber-based packaging solutions.”
A&R Packaging website
Images: AR Packaging
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