AR Packaging announces the agreement to acquire the European tobacco, chocolate confectionery and consumer apparel packaging operations from MeadWestvaco Corporation.
One of the key elements in the AR Packaging business plan is to expand in profitable segments where the company has a competitive edge. In 2014, the company communicated the commitment of significant funds for strategic investments. In line with these intentions AR Packaging announces the agreement to acquire the European tobacco, chocolate confectionery and consumer apparel packaging operations from MeadWestvaco Corporation. The acquisition will give AR Packaging the opportunity to further strengthen the cooperation with key tobacco customers as well as enhance the strategic position at key accounts in the confectionery and consumer goods segment. The operations included in the agreement are three plants in Graz, Austria; Krakow, Poland; and Moscow, Russia and some additional carton business and related machinery. Total turnover of the acquired operations is 146 million EUR. The geographical coverage of AR Packaging will improve with a stronger presence in countries well positioned to serve the eastern and south-eastern part of Europe with short lead times.
“This acquisition is a clear message to the market that AR Packaging is a strong and significant long-term packaging supplier. The company is a key driver of the consolidation process in the European carton packaging industry. We establish an even stronger position as one of the leaders in the tobacco segment and also on the total European folding carton scene. With this acquisition AR Packaging will be elevated to top 3 in Europe with a net revenue of approximately 550 million EUR” says Harald Schulz, President & CEO of AR Packaging. “We will continue deploying our ambitious development plan for the company and I am pleased to make this plan happen together with my team.”
The acquisition is subject to customary closing conditions and is expected to close in the next several months.