Terms of the deal were undisclosed but the move will create a $2bn powerhouse in the rigid and flexible film market. Linpac’s appeal to Klöckner is its expertise in the food market.
Linpac was put up for sale at the end of 2016 for a reported price tag of £450m. However, in February this year the company’s owners, SVP Global, indicated a change in strategy and intended to retain the business in light of a strong financial performance. Klöckner’s offer has resulted in an u-turn.
Wayne Hewett, chief executive of the Klöckner Pentaplast Group, 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.”
Daniel Dayan, chief executive of Linpac, added: “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.”
Source: News – Packaging News