INSIDE THE DEAL
ProAmpac acquires three Canadian manufacturers
15 November 2020 By Jessie Page
On 1 December, North American flexible packaging company ProAmpac announced that it had acquired Canada-based companies Rosenbloom Groupe, Hymopack, and Dyne-A-Pak for an undisclosed sum.
According to ProAmpac, this acquisition will enhance the company’s presence in Canada as well as allow ProAmpac to broaden its product offering in the US.
The companies involved
ProAmpac is a North American global flexible packaging company with a keen focus on sustainability. It is owned by Pritzker Private Capital along with company investors. Pritzker Private Capital partners with middle-market North American companies in the service and healthcare sectors.
Rosenbloom Groupe is a privately owned family business that specialises in manufacturing paper bags from grocery bags to pharmacy bags, manufacturing from a 170,000 ft2 facility in Montreal, Canada.
Hymopack and Dyne-A-Pak are both part of the Rosenbloom Groupe, also located in Quebec, Canada.
These three companies are leading suppliers to North American retailers, grocery chains, and quick service restaurants (QSR). They are wholesale distribution companies, manufacturing paper bags, plastic bags, can lines, and foam packaging trays.
Response from the companies
ProAmpac CEO Greg Tucker said: “All of us at ProAmpac have deep respect for the legacy and long history of excellence of the Rosenbloom Group of companies. We are pleased to add this strong business to our platforms, which enhances our presence in Canada and allows us to broaden our product offering in the US. With the Rosenbloom, Dyne-A-Pak and Hymopack brands as part of the ProAmpac family, we will deliver even greater value and services to our customers.”
Richard Rosenbloom of Rosenbloom Groupe said: “As a third-generation family business, it was important for us to partner with an organisation that understands our values and respects our culture. The ProAmpac team has demonstrated an appreciation for our history and I look forward to working collaboratively with Greg as we seamlessly bring our organisations together. Our capabilities are highly complementary with ProAmpac’s operations, and I am confident this combination will deliver compelling value to our customers and exciting opportunities for our team.”
Hymopack president Gerry Maldoff said: “With the expanded resources, scale, and combination with ProAmpac, our business will be well positioned for growth. I am excited to work with ProAmpac to enhance our plastic packaging and manufacturing capabilities, and provide a broader product offering to a growing base of grocery, retail, distribution, and QSR customers.”
Pritzker Private Capital investment partner Chris Trick said: “We are excited to welcome Rosenbloom Groupe to the ProAmpac and Pritzker Private Capital families. We look forward to our continued partnership with Greg and the entire ProAmpac team as the company continues to deliver the best possible products and services to its customers.”
What this means for ProAmpac
GlobalData packaging analyst Dominic Cakebread explains what this deal means for ProAmpac and the wider industry.
“ProAmpac and their owner Pritzker Private Capital seem to be expanding their manufacturing and sales operations across North America to build market share, firstly by further developing ProAmpac's own range of flexible packaging products in Canada and secondly by selling Rosenbloom, Hymopack and Dyne-a- Pak’s ranges of packaging products across a wider channel mix and geography,” says Cakebread. “ProAmpac is already a significant force in the North America packaging industry and these acquisitions will consolidate its position further.”
“This should mean ProAmpac can exploit the synergies between its different existing and new products, and operations to expand its business across North America,” Cakebread continues, “It is a further step toward greater consolidation in the flexible packaging industry which is much more fragmented than the to the rigid packaging industry – worldwide as well as in North America.”
Is flexible packaging a growing industry?
“The flexible packaging market has been growing strongly, especially for food and food packaging, driven by a general push to lighter weight, low-carbon footprint packaging, advanced barrier films and coatings, and the rapid expansion of flexible packaging pouches,” says Cakebread.
“Since 2018, the environmental debate and, increasingly, legislation around the world has changed, with significantly more pressure being placed on single-use plastics that are causing pollution in landfill and ocean waste. This has resulted in an increasing shift toward recycling as a solution to packaging and this, in turn, has favoured single material rigid plastics – such as PET and HDPE – and other packaging, over complex multilayer flexibles and co-extrusions.
“This pressure has slightly waned in 2020, as the Covid-19 pandemic has driven the strong need for more flexible film for hygiene reasons,” Cakebread continues. “So whilst it is not going to disappear overnight, there is significantly more interest now in developing more sustainable forms of flexible packaging, including bio-derived and biodegradable types and I would expect this to be more of a focus for ProAmpac going forward.”
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