Sun Capital to merge five packaging portfolio businesses
Exopack, Kobusch, Britton, Paragon and Paccor would be involved in the consolidation with a new parent company called Luxco and based in Luxembourg, according to a form 8-K filed to the US Securities and Exchange Commission.
The filing said the consolidation was targeting cost savings of $65m per year based on back-office, manufacturing and global procurement synergies.
The aim is greater technology and breadth, market share gains, a global manufacturing platform and the ability to drive best practices in manufacturing, according to the filing.
The consolidated group of the new company, called Exopack Holdings, will be comprised of two principal operating segments - the rigid division and the flexible division.
It will have 63 plants, 8,650 employees and aggregate revenues of more than US$2.5bn, making it the sixth-largest plastics packaging company in the world.
