News
29 August 2018
SIG adopts 100% renewable energy at production sites globally
Packaging firm SIG has switched to 100% renewable energy at its production sites globally, reportedly becoming the first company in the industry to do so.
The company is producing all its packs using electricity and gas, thereby eliminating greenhouse gas emissions from production.
The development allows SIG to deliver on its goal to source 100% renewable energy and Gold Standard CO2 offset for all non-renewable energy at production plants by 2020.
Last year, the company switched to 100% renewable electricity for production.
Currently, SIG is focused on replacing the remaining energy used in production with renewable alternatives.
SIG Energy Procurement global category manager Arnold Schuhwerk said: “We achieved a big milestone last year by securing 100% renewable electricity for production. Sourcing renewable alternatives for gas was even more challenging because the market for renewable biogas is not yet well established.”
The company noted that it failed to identify viable options to procure renewable biogas.
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29 August 2018
RPC to sell foodservice business to Graphic Packaging
British plastic packaging supplier RPC has signed an agreement to divest the foodservice business of its subsidiary Letica to Graphic Packaging International for $95m.
The foodservice business produces paperboard-based cold and hot cups and cartons for foodservice clients in North America.
The acquisition will add two foodservice converting facilities in Clarksville, Tennessee and Pittston, Pennsylvania to Graphic Packaging’s portfolio.
For the 12 months period ending on 30 June this year, the business generated revenues of $110m and converted around 40,000t of solid bleached sulfate (SBS) paperboard.
Graphic Packaging expects the acquisition to deliver synergies fuelled by the integration of additional SBS paperboard tonnes, lower logistics costs, and other cost efficiencies.
Graphic Packaging president and CEO Michael Doss said: “We are excited to announce the acquisition of the Letica Foodservice assets as it extends our leading position in the growing paperboard-based foodservice market in North America.
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28 August 2018
Stone Canyon acquires Industrial Container Services for $1bn
Stone Canyon Industries (SCI) has completed the acquisition of the parent holding company of US-based container solutions and services provider Industrial Container Services (ICS) for $1bn.
Following the announcement of the transaction in June this year, the company made the acquisition through its subsidiary BWAY Holding Company (BWAY), which is a global supplier of industrial rigid packaging products and services.
Under the terms of the deal, SCI made payments in cash and stock to ICS shareholders that include investment funds affiliated to Centerbridge Partners.
With the closure of the transaction, existing ICS equity holders will have around 11% interest in BWAY.
As a result of the transaction terms, Centerbridge senior managing director Kyle Cruz has joined the board of BWAY.
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24 August 2018
United Caps partners with Braskem to deliver sustainable caps
United Caps has partnered with Brazilian petrochemical company Braskem to supply GREENER bio-sourced plastic caps and closures made from sugar cane.
Braskem Netherlands sales manager Brendan Hill said: “Braskem is pleased to be working with United Caps to bring their more environmentally sustainable GREENER closure solutions to the caps and closure market.”
The GREENER bioplastic caps are based on Braskem’s ‘I’m green’ Polyethylene, which is developed using bioethanol as the alternative to traditional fossil feedstock. Being a renewable feedstock, sugarcane captures and fixes CO2 from the atmosphere with every growth cycle, which occurs annually. As a result, the production of I’m green Polyethylene contributes to the reduction of greenhouse gas emissions when compared to traditional polyethylene, made from fossil materials.
The collaboration will add sustainable caps and closures to the existing United Caps product portfolio.
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23 August 2018
Advent to buy Indian packaging firm Manjushree Technopack
US-based private equity company Advent International is reportedly pursuing the acquisition of a majority ownership of Indian packaging solutions provider Manjushree Technopack, in a transaction valued at Rs23bn ($330m).
Media reports revealed that Advent will acquire private equity firm Kedaara Capital’s 24% stake and promoter Vimal Kedia’s interest in the polyethylene terephthalate (PET) manufacturer.
Following the sale, Kedia will retain a minority stake in the company.
Advent emerged as the frontrunner to acquire controlling stake in Manjushree, beating competition from other aspirants such as KKR, Carlyle, Thailand’s SCG, US-based firms IPG and Graham Packaging.
Manjushree’s clientele includes GlaxoSmithKline, Coca-Cola, Nestle, Mondelez, PepsiCo, Reckitt Benckiser, Bacardi, Ranbaxy Laboratories, Perfetti Van Melle, Pfizer, and Amway.
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22 August 2018
LyondellBasell concludes $2.25bn acquisition of A. Schulman
LyondellBasell has closed the acquisition of plastics material and resin manufacturing company A. Schulman for $2.25bn.
With the acquisition, LyondellBasell has more than doubled its existing compounding business.
The transaction allows the company to produce a wider range of products for growing, high-margin end markets such as packaging, automotive, construction materials and electronic goods.
Schulman is a supplier of high-performance plastic compounds, composites and powders.
LyondellBasell CEO Bob Patel said: “This acquisition builds upon our complementary strengths, creating a substantial value proposition for our customers and positioning the company for future growth in this space.
“Moving forward, our team is focused on a seamless integration that captures opportunity and creates exceptional value for our shareholders.”
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21 August 2018
AWT Labels buys clinical labelling company Citation
AWT Labels and Packaging has acquired US-based Citation Clinical Labeling Systems, which provides clinical trial labels for pharmaceutical and biotechnology companies, for an undisclosed sum.
Following the acquisition, Citation Clinical Labeling business, which will be owned by AWT and management, will now operate as Citation Healthcare Labels.
Citation president Richard Bolnick and chief operating officer Frederick Youngs will continue in their respective roles as well as will become shareholders of AWT.
The company also offers clinical trial labels for clinical research organisations and clinical packagers. It provides product quality, project management, customer service and speed to market services for pharmaceutical customers.
Citation currently operates from a single pharmaceutical and medical grade facility in Hauppauge, New York and employs approximately 100 employees.
Bolnick said: “Citation looks forward to the next chapter of growth by joining the AWT organisation.”
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20 August 2018
Ontario Teachers’ Pension suspends Exal sale plans
Ontario Teachers’ Pension Plan Board has reportedly terminated its plans to offload US-based specialty aluminium containers manufacturer Exal.
As part of the sale process, the pension fund manager appointed advisers earlier this year to pursue the divestment for around $1bn. However, the company has reportedly scrapped the plans for now.
Bidding companies for the acquisition of Exal did not meet the targeted price of the pension fund.
The price is based on earnings before interest, taxes, depreciation and amortisation of around $80m per annum.
Reportedly, the pension fund could also recommence efforts to divest the company.
With substantial operations in South America, Exal manufactures containers for aerosols, beverages and food.
Lower-than-expected offers are in view of Exal’s weakness in its Argentina operations in recent months.
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