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Cermex expands palletizing ops with Newtec takeover, eyes liquid dairy growth

By Rory Harrington , 07-May-2012

Cermex looks to expand penetration into liquid dairy market with Newtec Case Palletizing buyout
Cermex looks to expand penetration into liquid dairy market with Newtec Case Palletizing buyout

Cermex has announced the acquisition of a major part of fellow French end-of-line packaging firm Newtec Group as part of a strategy to strengthen its palletizing operations.

The Tetra Laval subsidiary told FoodProductionDaily.com it had finalised the takeover of Newtec Case Palletizing on Friday and that the deal would allow it to boost its foothold in the fast-growing liquid dairy products sector.

The transaction would make the liquid dairy sector a “more integral part of the Cermex strategy”, said the company.

“Cermex will extend its presence in the dairy liquid food business thanks to Newtec expertise and range,” added spokesman Jean-Marc Passemard.

No financial details of the takeover were provided but Passemard said Newtec’s case palletizing unit had a turnover of around €22m and employed 140 people. This makes it the largest business unit in Newtec which said its total turnover in 2010 reached €33m with a workforce of 210.

International reach, turnkey solutions

The deal will see Cermex secure Newtec’s palletizing plant in Saint-Laurent-sure-Sevre in France along with its related layer-by-layer and robotic unit loading palletizing activity.

Cermex said the acquisition was a continuation of its growth strategy by consolidating its operations across all three of its operations – case packing, shrink wrapping and palletizing.

The buyout will see the firm’s workforce expand to almost 800 and boost its turnover to €120m a year.

The Newtec business unit would be integrating into Cermex’s existing structure creating a trio of “expertise centres” in France; case packing in Corcelles-lès-Cîteaux, shrink-wrapping in Lisieux and palletizing in Saint-Laurent-sur-Sèvre.

Passemard said both parties would benefit from the move. Newtec, which previously sold in France and Western Europe, will now reach the global market thanks to Cermex international network, he said.  

The spokesman added: “On the other hand, it will be boost the Cermex’s End of Line turnkey solutions as Cermex was more known in the case packing and shrink-wrapping areas.”

Cermex, which was bought out by Sidel in 1996, has production plants in India and China, as well as the three in France. It serves the food, beverage and personal and home care sectors. Newtec is present in the liquid dairy and beverage segments.

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