Faerch enters into exclusive negotiations to acquire CGL Pack
Leading European supplier of trays for the food industry, Faerch, with headquarters in Holstebro, Denmark, is considering further strengthening its position as a significant supplier to the expanding global food industry by entering into final exclusive negotiations to acquire CGL Pack from PSB Industries in France with expected Closing prior to end July 2018.
CGL Pack is part of the Paris listed PSB Industries Group with business within packaging and specialty chemicals. The company’s packaging business manufactures high quality bespoke packaging solutions for the food service industry, healthcare and consumer products. 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.
The transaction would take place just eight month after private equity fund Advent International, acquired Faerch. An ownership that has opened a number of opportunities for the further development and acceleration of Faerch ambitions on the international market through acquisitions and organic growth initiatives.
“We are impressed by the extensive product portfolio at CGL pack and their innovative design capabilities. Faerch 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. The reputation and image of CGL pack’s activities are impressive”, says Faerch Group CEO, Lars Gade Hansen.
“In recent years Faerch 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 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”.
“CGL pack is a strong performing company with best in class design competences, strong manufacturing capabilities delivering innovative products into the segments served. CGL pack’s product portfolio is a unique blend of tailored customers solutions and “standard” solutions sold into French blue-chip clients. 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 is eager to pursue and develop further”, says Faerch Group CEO, Lars Gade Hansen.
The transaction is subject to customary conditions and is expected to be consummated prior to end July 2018.