Faerch to acquire PACCOR Packaging from private equity firm Lindsay Goldberg. The acquisition is yet another important step in the execution of Faerch’s long-term growth plan and in accelerating the industry’s transition towards circular packaging solutions.
Faerch, a leading European supplier of rigid food packaging and the world’s first integrated recycler of PET food packaging, today announced the acquisition of PACCOR Packaging. The acquisition underlines Faerch’s overall strategy for creating circularity in food packaging and will accelerate the required material conversion towards sustainable packaging solutions in the European dairy sector, the largest segment in rigid food packaging.
Offering a wide range of innovative packaging solutions mainly for the food industry, PACCOR is a European leader in protective packaging for the dairy sector. It has built a long track record of innovation and premium service for the largest and most demanding dairy customers, delivering state-of-the-art solutions mostly in yoghurt, spreads and ice cream packaging.
"With PACCOR’s strong position in the dairy sector, our complementary geographical footprints and our shared ambition to make food packaging circular, PACCOR is the perfect match for Faerch", Lars Gade Hansen, CEO of Faerch Group, says. "We have always respected PACCOR for their dedication to quality, innovation and customer service, and we are delighted to now join forces with the excellent PACCOR team", he continues.
"We are very much looking forward to becoming part of the Faerch Group. After years of successful growth, we see in Faerch the perfect partner for us”, Andreas Schütte, CEO of PACCOR adds. “Faerch’s unique integrated recycling capabilities offer fully new opportunities to accelerate the transition towards circular packaging solutions, while combining the two companies’ dedication to innovation and investments in R&D", he says.
PACCOR was founded in 2011, as a successful merger of several packaging companies. Today the company is present in 18 countries, and PACCOR’s geographical footprint complements Faerch’s pan-European presence. The acquisition comprises 16 production sites in Europe, Asia and the US and more than 3,400 employees. The new company set-up marks a strong focus on innovation and when the transaction has been approved, the Faerch Group will comprise of 34 sites and employ almost 6,000 people globally.
"We look forward to welcoming all of our new highly skilled colleagues to the Group. With PACCOR becoming part of Faerch, the industry’s transition towards circularity will gain additional momentum for food packaging being recycled back into new food packaging of the same quality again and again", Lars Gade Hansen underlines. "With PACCOR’s leading position in the dairy sector, Faerch will be present in all major food packaging segments, allowing the much needed standardisation away from non-recyclable legacy materials towards truly circular packaging solutions. A comprehensive investment programme for supporting material conversion and scaling our recycling platform will be launched", he concludes.
The transaction is subject to customary closing conditions and regulatory approval. The PACCOR UK business including their two production sites are not part of the transaction and will remain with Lindsay Goldberg.
Faerch Group was advised by Credit Suisse, Plesner Law Firm, EY, Skadden Law Firm and COWI.