Faerch Plast, a European supplier of trays for the food industry, is in exclusive negotiations to take over French packaging firm CGL Pack from owner PSB Industries.
Headquartered in Holstebro, Denmark, Faerch Plast said 7 May that the bid was part of its strategy to strengthen its position as “a significant supplier” to food industry.
The company expects the deal to close by end of July.
CGL Pack is part of the Paris listed PSB Industries Group, with businesses in the packaging and speciality chemicals sectors.
The company’s packaging business manufactures packaging solutions for the food service industry, healthcare and consumer products.
The transaction, the amount of which was not announced, would comprise the activities of two French manufacturing sites located in Annecy and Lorient, as well as the CGL Pack headquarter in Annecy and associated commercial activities.
The move comes only eight months after private equity fund Advent International, acquired Faerch Plast.
The new ownership structure, said Faerch Plast, has opened up new opportunities for the further development the company internationally through acquisitions and organic growth initiatives.
“We are impressed by the extensive product portfolio at CGL pack and their innovative design capabilities,” said Faerch Plast Group CEO, Lars Gade Hansen.
According to Hansen, Faerch Plast has been delivering an organic growth above market level in recent years, thanks to its product and technology innovation.
“It has for a number of years been paramount for Faerch Plast to have a local footprint in the French market. With the two CGL Pack sites in France, this strategic parameter for growth would be achieved,” he added.
The move will also strengthen the company’s position in France’s neighbouring markets, Hansen added.
“In addition to the food sector, CGL Pack has a balanced portfolio with packaging solutions for both Healthcare and Consumer goods. These are interesting segments with growth potential that Faerch Plast is eager to pursue and develop further,” Hansen concluded.