Specialty plastic and packaging products supplier Essentra has agreed to acquire the specialist packaging division of Clondalkin, in a deal worth $455m.
An agreement to this effect was signed between both companies.
The acquisition is said to form part of Essentra’s strategy to complement organic growth with value-adding acquisitions in its targeted end-markets.
It will also provide the company with enhanced geographic presence in healthcare packaging.
The scope of the acquisition also includes certain tax assets that are valued around $20m.
Essentra CEO Colin Day said: "The acquisition of Clondalkin SPD is a compelling strategic and complementary fit for Essentra, which transforms our existing geographical capabilities to pharmaceutical and healthcare customers who are increasingly seeking a global partner for their packaging requirements.
"In addition, Clondalkin SPD substantially enhances Essentra’s position in the growing personal care and beauty packaging industry.
"With an experienced management team and proven track record, this acquisition, being the largest in the Company’s history, underscores Essentra’s commitment to building a leading global provider of essential components and solutions in our targeted market categories."
Clondalkin specialist packaging division’s product portfolio of folding carton, product literature and labels will complement Essentra’s current packaging and authentication capabilities.
Headquartered in the Netherlands, Clondalkin currently has 24 facilities in North America and Europe. It offers a wide range of speciality secondary packaging solutions for the pharmaceutical and health and personal care industries.
The acquisition is expected to receive customary closing conditions, including clearance from certain competition authorities, in Q1 2015.
Image: Clondalkin specialist packaging division offers folding carton, product literature and labels. Photo: courtesy of tigger11th / FreeDigitalPhotos.net.