Klockner Pentaplast buys packaging films producer Linpac Group

The deal will create a rigid & flexible packaging films firm having annual revenues of above $ 2 bn

BS B2B Bureau Montabaur, Germany

Last Updated : Apr 12 2017 | 3:39 PM IST

The Klockner Pentaplast Group (KP), the German provider of rigid plastic films and packaging solutions, has agreed to acquire Linpac Senior Holdings Limited, an important films producer and converter for food packaging in Europe. Financial terms of the transaction were not disclosed.

The transaction will create a global leader in the rigid and flexible packaging films market, with combined annual revenues exceeding $ 2 billion.

“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,” said Wayne Hewett, CEO of Klockner Pentaplast.

Daniel Dayan, CEO 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.”

The combination of Klockner Pentaplast’s films production with Linpac’s highly innovative films production and conversion capabilities will create a one-stop-shop providing complete packaging solutions to customers. The acquisition of Linpac will further strengthen KP’s customer-centric business approach, a key pillar of the company’s strategy.

The acquisition will also enable KP to expand its technological capabilities further into the rigid and flexible films market. This market benefits heavily from megatrends including customers’ desire for healthy and safe food with an extended shelf life.

By bringing together two innovative firms in the film and packaging industry, Klockner Pentaplast would create a true R&D powerhouse. By leveraging KP’s and Linpac’s combined and diverse customer universe, KP will be able to develop products, solutions and design capabilities that are tailor-made to address customer needs and will unlock further growth potential.