Jiffy Packaging Europe is planning to offload its systems division to Germany-based flexible film and foam manufacturer Ripac for an undisclosed amount.
The divestment forms a part of the company's strategy to focus on polyolefin foam and bubble film manufacturing in order to become a leader in that market.
The division being sold currently offers air cushion technology and foam-in-place systems.
As part of the acquisition, all systems employees will be transferred to Ripac and will continue to operate from their existing locations.
Since 2008, Jiffy Packaging and Ripac have been jointly working on the supply of film for the systems division.
Jiffy Packaging recently invested in additional foam capacity in Romania, Germany, Belgium and the UK, a move that will enable the company to cater to new markets.
Jiffy CEO Mark Köllmann said: "These investments signal our intention to grow and innovate with quality products for new markets.
"At the same time, we shall continue to supply our well-known brands to the many markets we serve, with the highest level of customer service, which is synonymous with the Jiffy brand."
Founded in April 2008, Ripac has sites in Germany, the Netherlands, Belgium, France, the UK, Poland, the Czech Republic and Hungary.