US-based packaging and engineered materials provider Berry Plastics has secured approval in China to acquire a controlling stake in Qingdao P&B.
Qingdao, which has annual revenues of $34m, offers packaging products that are manufactured through thermoform, injection, and automated assembly processes for food and personal care markets across China and globally.
Berry Plastics will acquire a 75% controlling stake in Qingdao. Minority ownership will be retained by Peter Song, the original founder of Qingdao and the current general manager of the business. The registration that is currently pending with the local company registry is expected to be completed by February.
Qingdao will operate with new corporate name Qingdao Berry Plastics and will provide rigid plastic packaging and personal care products to China as well as its global customers.
Berry Plastics chairman and CEO Jon Rich said that the joint venture would enable the company to introduce new packaging products to customers in China and Asia.
"This acquisition is in direct alignment with our strategic objective of establishing a business presence in emerging global markets," Rich added.
Qingdao founder Peter Song said that the company has been supplying packaging products to Berry Plastics for more than seven years.
"During this time, we have had the opportunity to get to know each other well and develop a strong relationship. We are excited to be able to expand our services by tapping into world-class-level research and development and manufacturing capabilities to fulfill our customers' packaging needs," Song added.