Essentra, an international supplier of speciality plastic, fibre, foam and packaging products, has agreed to purchase Clondalkin Group’s Specialist Packaging Division (Clondalkin SPD) for US$455m in cash.
This deal is expected to complete in the first quarter of 2015 and will significantly extend Essentra’s packaging capabilities.
With 24 strategically located facilities, Clondalkin SPD is a leading global provider of speciality secondary packaging solutions for the pharmaceutical and health and personal care industries, and will transform Essentra’s position in these markets. As a leading player in North America, and with strong market positions in Europe and annual sales in excess of €700m, Clondalkin SPD’s range of technologies and capabilities support the high product quality and the versatility to deliver the complex solutions required, said Essentra.
The addition of Clondalkin SPD significantly enhances Essentra’s existing geographic presence in healthcare packaging and, through leveraging the combined footprint of both businesses, will allow the company to further exploit both existing and new growth opportunities.
In addition, Clondalkin SPD’s product portfolio of folding carton, product literature and labels is complementary to Essentra’s current packaging and authentication capabilities, thereby broadening the range and innovation offered to customers.
Commenting on the acquisition, Malcolm Waugh, Essentra Group's Commercial Director, said: 'Clondalkin SPD is a highly attractive business, with a focus on the growing health and personal care industries, and a comprehensive offering of high quality, innovative and mission critical products to meet the exacting requirements of an international customer base, which is increasingly seeking a global partner for their packaging solutions.'
David Lennon, Co-CEO of Clondalkin Group, added: 'We believe that Essentra will continue to build upon the legacy of excellent service and high quality built by the strong teams in place across our businesses in Europe and North America.
'We also believe the deep commitment Essentra has demonstrated to pharmaceutical and healthcare packaging through its extensive network of well invested plants makes it an ideal owner of this business.'