Klöckner Pentaplast (KP), a worldwide leader in solutions for rigid plastic film and packaging, declared that a binding agreement has been signed to acquire LINPAC Senior Holdings Limited, an important European film producer/converter for food packaging, with its both direct and indirect subsidiaries. The deal, expected to close in summer 2017, will result in a new worldwide leader in the market for both rigid and flexible film, with joint annual revenues of over $2 billion.
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CEO of KP Wayne M. Hewett thus commented on the big news: "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."
His words were echoes by those of Daniel Dayan, CEO of LINPAC: "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."
As for the corporate governance, Wayne M. Hewett will head the merged group, while Daniel Dayan will be responsible for the Food portfolio.
Binding KP's premium class film production with LINPAC's state-of-the-art film production/conversion capabilities will result in a one-stop shop for comprehensive packaging solutions. By acquiring LINPAC, KP will continue reinforcing its customer-oriented business approach.
The flexible and rigid film market benefits profoundly from megatrends such as customers choosing healthier and safer food with long shelf life. With the acquisition, KP aims at creating a true R&D sinews. The varied shared customer universe will allow KP to create made-to-order products, solutions and designs in order to unravel further growth potential.
The joint company will boast a wider customer base, portfolio, and overall grasp with a total of 32 facilities across 16 countries with over six thousand employees. LINPAC's expansion ambitions will be significantly sped up thanks to KP's international footprint, above all in the Northern and Southern America.
