The transaction includes Sealed Air’s manufacturing facilities in Poole, UK and Bunol, Spain and is expected to be completed on November 1. The European arm generated approximately US$71m in sales in the 2014 financial year.
With the acquisition, Færch Plast takes over the Cryovac food packaging brand that for more than 50 years has supplied innovative food packaging solutions worldwide, particularly within the fresh meat and skin pack sector.
Faerch Plast said the move allowed it to offer a stronger and wider product portfolio and to extend its customer base internationally.
‘Impressed’
“We are impressed by the extensive product portfolio at Sealed Air Poole and Buñol,” said Færch Plast president & CEO Lars Gade Hansen.
“We believe the combination with Færch Plast to be an excellent opportunity for both parties, providing an even stronger foundation to deliver a broad, high quality product range to our customers. The reputation and image of Sealed Air’s European tray activities are impressive.”
Jerome Peribere, Sealed Air president and CEO, said: “As we continue to transform into a knowledge-based company, we want to ensure that our resources are dedicated to support our core businesses and to drive the development of disruptive technologies that will accelerate our growth opportunities.”
Strategy
“This transaction follows the sale of our North American foam tray and pads business in April 2015 and is aligned with our Get Fit/Change the Game strategy.”
In turn, the deal represents the second acquisition by Faerch Plast this year, after the purchase of UK-based Anson Packaging.
“Being majority owned by the private equity fund EQT VI has enabled us to take a more offensive approach and further develop Færch Plast by acquisitions,” said Hanson. “The two acquisitions are vital for further strengthening our position as a leader in the production of high performance packaging solutions.
“Anson Packaging and Sealed Air are strong performing companies with leading positions in their respective segments, namely cold food, snacks and fresh meat. Together with our market leading position in ready meals, and the extended footprint in southern Europe, the consolidation has created a very strong portfolio covering our market across Europe.”
Sustainability
In 2014, Sealed Air generated revenue of approximately $7.8bn and developed a strong sustainability strategy, driven by its customers’ demands.
It has a portfolio of widely recognized brands, including Cryovac brand food packaging solutions, Bubble Wrap brand cushioning and Diversey cleaning and hygiene solutions.
The company has about 24,000 employees who serve customers in 175 countries.
Faerch Plast’s headquarters is located in Holstebro, Denmark, and it employs 900 people spread across four production sites in Denmark, the UK and the Czech Republic, and various European sales offices.