Packaging M&A momentum builds: Constantia enters UK consumer packaging, Mondi converts Duino, Tri-Wall and Hood expand

Mergers and acquisitions continue to drive strategic growth across the packaging sector. In recent developments spanning flexible packaging, corrugated cartons and paper-based materials, several major players have moved to expand their regional reach, product portfolios and vertical integration through acquisitions, asset consolidation and mill conversions.

Constantia Flexibles has announced an agreement to acquire FFP Packaging Solutions. The deal will give Constantia its first consumer packaging site in the UK, with a focus on recyclable laminated packaging for flow wrap, lidding film and pre-made pouches. FFP Packaging Solutions, based in Northampton, UK, is a flexible plastic packaging company that supplies recyclable laminated packaging and solutions for those same applications. Such products are reported to account for over 80% of its sustainable packaging sales, and the company works closely with many leading food brands and UK retailers.

Pim Vervaet, CEO of Constantia Flexibles, said the acquisition fits the company's 2025 vision growth strategy of investing in competitive businesses with future growth potential. Bringing FFP Packaging Solutions into Constantia Flexibles will strengthen the group's overall market position. FFP's experience and credibility have built strong relationships across the UK food industry, and Constantia will work with the existing management team to keep advancing the sustainable flexible packaging revolution in the UK and beyond. Sustainable packaging solutions are no longer a trend but a necessity, he said, and FFP Packaging Solutions' figures already demonstrate this. Together, the companies are committed to the circular economy and to driving the transition through more sustainable packaging.

David Cooper, Managing Director and CEO of FFP Packaging Solutions, added that, on behalf of the directors and the whole team, he thanked Robin, Chairman of FFP Packaging Solutions, and the Chadley family for their continued trust and support, including in shaping FFP's strategy to drive the UK's sustainable flexible packaging revolution. He said the team is delighted to join the Constantia Flexibles family and looks forward to combining resources and broader business capabilities to accelerate sustainable flexible packaging development while continuing to deliver significant value to customers.

In another flexible packaging move, H.I.G announced that its portfolio company Dazpak Flexible Packaging has completed the acquisition of Atlapac and the Inno-lok polymer packaging division. Atlapac, headquartered in Columbus, Ohio, is a flexible packaging and pouch converter serving the food and beverage, home care and healthcare end markets. The acquisition strengthens the combined company's ability to provide flexible packaging solutions and services in the Midwest and will accelerate Dazpak's entry into new products and markets. Polymer, based in Massillon, Ohio, is one of the leading converters of Inno-lok bags, focused primarily on food and beverage end markets. Polymer's assets will be merged with Atlapac once the transaction is complete.

UK paper and packaging giant Mondi, after recently agreeing to sell its Syktyvkar plant to Augment Investments for RUB 95 billion due to the Russia-Ukraine war, has agreed to acquire the Duino plant near Trieste, Italy, from the Burgo Group for EUR 40 million. The site currently uses one paper machine to produce lightweight coated mechanical paper. Mondi said it plans to convert the machine to produce about 420,000 tonnes per year of premium recycled linerboard, with an estimated investment of about EUR 200 million.

In its August 16 transaction announcement, Mondi said Duino is ideally located close to two important export ports, allowing it to supply the group's corrugated solutions plants in Central Europe and Turkey while serving the growing Italian domestic market. The linerboard machine will strengthen backward integration for the corrugated packaging business, providing supply security and enabling better customer service.

Andrew King, CEO of Mondi Group, commented that the company is pleased to have the opportunity to invest in the growth of its packaging business, build its integrated platform and expand its geographic reach. The acquisition is subject to competition clearance and other closing conditions and is expected to be completed in the second half of the year.

In the corrugated carton sector, Tony Hyson, Chairman of The Corrugated Case, confirmed that on Tuesday, August 9, the company was acquired by the UK's Tri-Wall, part of Japan's Rengo Group. The purchase of The Corrugated Case Co means Tri-Wall has acquired a growing, well-equipped and progressive business, expanding its UK portfolio and geographic coverage. Hyson said that by joining the Tri-Wall family, which is committed to continuing its UK expansion, the business will gain greater financial strength and be able to continue growing and thriving in the future. The terms of the transaction were not disclosed.

Separately, Hood Container Corporation announced the acquisition of the corrugated packaging business of Kentwood Packaging in Walker, Michigan. Kentwood Packaging co-owners Jack Schogg and Tom Boluyt said they built the business successfully over the past 30 years by creating a customer-centric model focused on collaboration with employees, customers and suppliers. They said they are very pleased to join Hood Container, whose values and culture truly reflect their own. With Hood's national footprint and vertical supply chain integration, they will become a stronger partner for customers.

Jack Schogg will continue in a leadership role in the market as General Manager, while Tom Boluyt will retire after 41 years at KPC. Charlie Hodges, President and Chief Operating Officer of Hood Container, said Jack Schogg and Tom Boluyt built a company centered on a strong leadership culture, care for employees and first-class products and services that support and exceed customer needs. Hood Container believes Kentwood is an excellent fit with its own guiding principles and aims to be the best supplier to customers in the markets it chooses to serve. The addition of Kentwood will help the company build on those key foundations and reach a new level.

Hood Container has offices in 16 US states. It also owns and operates linerboard, corrugated and specialty paper manufacturing operations in New Johnsonville, Tennessee, and St. Francisville, Louisiana. The business is part of Hood Container Corporation, a privately held company engaged in the manufacturing and distribution of forest and wood products, construction and building materials, as well as flexible and corrugated packaging products across North America.

This update is based on public reporting from China Packaging Network (news.pack.cn). Original link: http://news.pack.cn/show-379103.html. Copyright belongs to the original author; this material is for industry exchange and learning only.