Sweden-based table setting and take-away products supplier Duni has acquired a 75% stake in sustainable disposable packaging firm BioPak from entrepreneurs Gary Smith and Richard Fine for Skr410m ($45.76m).
The value of the transaction is covered within existing loan facilities. It also includes a supplementary payment of approximately Skr24m ($2.7m) for an additional 5% of the shares after two years, as well as a put and call option for the remaining 20% of shares after five years.
The value for the final 20% of shares will be decided based on the company’s growth and profit performance in the next five years.
Duni CEO Johan Sundelin said: “We have admired BioPak’s consistent promise to provide sustainable products to the foodservice industry, and are now looking forward to collaborating with Gary, Richard, and their fantastic team in our common mission.
“This acquisition perfectly meets our strategic ambitions of growing in sustainable packaging and in building a stronger business in the APAC region.”
Duni will consolidate the BioPak and its three subsidiaries into new area business markets as part of the Duni Group starting mid-October.
BioPak will also operate as a separate entity and its founders will continue in the company’s management team.
BioPak CEO Gary Smith said: “BioPak is on a significant growth journey and we look forward to partnering with Duni to grow both within and outside of the APAC region.
“Duni shares BioPak’s key values regarding sustainability and customer prioritisation, which will allow for a fruitful partnership in coming years.”
Based in Australia, BioPak offers sustainable packaging solutions, including a range of products made using fibres, cardboard and bioplastics.