Sun Capital Partners is all set to consolidate five of its plastic packaging portfolio companies to form a single company.
The companies to be merged include Exopack, Kobusch, Britton, Paragon and Paccor, whose combined revenue was around $2.5bn in 2012.
The merged businesses will create a new company with 63 plants and 8,650 employees.
According to the private equity firm, the new plastic packaging company, which will be known under the name Exopack Holdings, will be based in Luxembourg and owned by Luxco.
The transaction, which will merge businesses working in Europe and the Middle East with Exopack, is expected to generate annual savings of around $65m based on back office, manufacturing and global procurement operations of the company.
In 2012, the companies reported around $255m in total EBITDA, which would amount to around $319m after cost savings.
The consolidation is said to give the new company an opportunity to continue to grow through acquisitions in various geographies as well as market segments.
Both Luxco and Exopack will be held by funds managed by Sun Capital, which acquired Exopack in 2005 and other four companies over the last three years.
The company is claimed to benefit from a range of products and technology and a global manufacturing platform that will allow it to gain share with consumer goods companies.