Klöckner Pentaplast completes acquisition of Linpac Group

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The Klöckner Pentaplast Group has completed the acquisition of UK-based Linpac Senior Holdings Ltd and its subsidiaries, the two companies announced on 3 July.

The transaction will create a global player in the rigid and flexible film market, with annual revenues exceeding $2bn (€1.7bn).

The companies had previously announced the deal, which combines two global plastics packaging companies, on 7 April.

Linpac and KP are already owned by investment firm Strategic Value Partners LLC, and the deal may foreshadow an initial public offering for the combined company later this year.

The US SVPGlobal specialises in distressed debt and value investments.

Klöckner Pentaplast will continue to be led by Wayne Hewett. Daniel Dayan, former CEO of Linpac, will lead KP’s food and consumer packaging division.

Linpac is based in Birmingham, UK and has been owned by SVPGlobal since 2015.

A Reuters report in November last year suggested that SVPGlobal was trying to sell Linpac, and that the price tag could be $555m (€487m).

SVPGlobal also tried to sell Montbaur, Germany-based Klöckner Pentaplast in 2014, but took the firm off the market when bids came in well below the asking price of $1.9bn (€1.6bn). SVPGlobal bought KP in 2012 for debt and equity of $1.3bn (€1.14bn).

KP has been planning an initial public offering but the deal may delay the process.

The transaction also will further develop KP’s offerings in end markets such as pharmaceuticals, food and beverage, and consumer and industrial products.

The strategic rationale behind the move is to create a one-stop-shop with the combination of the two film production capabilities. KP said the acquisition will expand its technological capabilities.

Additionally, KP expects to create an “R&D powerhouse” through the acquisition and to provide “tailor-made” products for customers.

Together, KP and Linpac will have 32 locations across 16 countries with about 6,300 employees.

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