The transaction will create a global leader in the rigid and flexible film market, with combined annual revenues exceeding $2 billion.
“This is a highly complementary acquisition that will help KP expand our technological capabilities and presence into the food industry and the rigid and flexible film market, as well as further develop our offerings in end markets such as pharmaceuticals, food and beverage, and consumer and industrial products,” Wayne M. Hewett, CEO of KP, said.
“We are excited to join forces with KP and believe this transaction will significantly accelerate LINPAC’s geographic expansion,” Daniel Dayan, CEO of LINPAC, said. “Merging these two market leaders into one company will create strong opportunities for all involved and we look forward to working together.”
The combination of KP’s world class film production with LINPAC’s innovative film production and conversion capabilities will create a one-stop-shop providing complete packaging solutions to customers.
The acquisition will also enable KP to expand its technological capabilities further into the rigid and flexible film market. This market benefits heavily from megatrends including customers’ desire for healthy and safe food with an extended shelf life.
The combined company will have an extended reach and portfolio breadth, as well as a broader customer base. Together, KP and LINPAC will have 32 locations across 16 countries with approximately 6,300 employees. KP’s existing global footprint with operations on six continents will greatly accelerate LINPAC’s geographic expansion ambitions, particularly in the Americas.
The consolidated group will be led by Hewett. Dayan will lead the Food portfolio. The transaction is subject to approval by certain regulatory authorities, as well as information processes with employee representatives in certain jurisdictions. It is expected to close in the summer of 2017.