Faerch Plast has entered exclusive negotiations to acquire part of the Paris listed PSB Industries Group, CGL Pack.
The transaction 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.
Taking place eight month after private equity fund Advent International, acquired Faerch Plast, the company says this ownership has opened opportunities for further development and acceleration of Faerch Plast ambitions on the international market through acquisitions and organic growth initiatives.
Lars Gade Hansen, Faerch Plast Group CEO, said: “Together with Faerch’s leading position within the ready meals and the protein segment, the consolidation would create a very strong portfolio. 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.”
“Faerch Plast has a long history in the French market, and we believe the combination with CGL Pack would be an excellent opportunity for both parties, providing a much stronger foundation to deliver a broad, high quality product range to our customers,” added Faerch Plast Group CEO, Lars Gade Hansen.
“In recent years Faerch Plast has been delivering an organic growth above market level as a result of our strategy of continuous 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. We believe this would further strengthen our position in France but also in the adjacent countries.”
The transaction is subject to customary conditions and is expected to close in July 2018.