US-based cold chain packaging company TemperPack Technologies has entered an agreement to acquire sustainable packaging provider KTM Industries.
KTM Industries produces Green Cell Foam, a natural, environmentally friendly packaging material made from cornstarch.
The company offers design testing and fabrication services and operates facilities in Holt, Michigan, and Reno, Nevada.
KTM serves the pharmaceutical, speciality food and nutritional supplement industries, providing eco-conscious and compostable alternative for expanded polystyrene foam coolers.
The company also claims its solutions have diverted more than ten million plastic-based coolers from landfills.
The acquisition is intended to allow TemperPack to expand its product line and increase its market coverage.
It will facilitate the development of renewable materials that could compete with plastic foams and other environmentally harmful materials utilised in cold-chain and non-thermal, protective packaging.
TemperPack Technologies chairman and CEO Bob Beckler said: “We are exceptionally pleased to bring together these two companies with disruptive technologies and complementary, high-performance products including ClimaCell and Green Cell Foam to serve the rapidly growing need for sustainable, protective materials.
“The strategic fit of TemperPack and KTM could not be stronger.”
The combined entity will have more than 700 employees and operate four facilities in the US. These will be located in Richmond, Virginia, Las Vegas and Reno, Nevada, and Holt, Michigan.
KTM president and CEO Tim Colonnese said: “This is an exciting milestone for us, one that will create great opportunities to expand Green Cell Foam.
“We are fully aligned with the mission of TemperPack which is to provide engineered, protective materials that eliminate the need for synthetic foams which harm the environment.”
The deal is expected to close this month subject to customary closing conditions being met.
Earlier this year, TemperPack received $140m in an equity financing round led by Goldman Sachs Asset Management’s Sustainable Investing unit.