Global packaging giant Coveris Holdings Corp has launched into the Australasian market with a NZ$30m deal to acquire NZ packaging business Elldex.
Auckland-based Elldex Packaging Solutions, with 125 employees and a turnover of around NZ$42m, is a leading Australasian manufacturer and importer of high-density polyethylene (HDPE) and low-density polyethylene (LDPE) flexible plastic packaging for the meat, dairy, seafood, agriculture and industrial sectors.
Elldex is due to open a new 48,000 sq.ft plant in Christchurch, NZ, in the coming weeks. The company will retain its existing management team and be renamed Coveris Australasia.
“Elldex is a terrific strategic fit for Coveris,” said Murray Hine, Elldex GM. “We are pleased to be part of this growing packaging company.”
Coveris said the acquisition, effective immediately, would enable the company to expand globally into Australasia and underlined its ongoing commitment to ‘geographic expansion.’
“We are very pleased to add Elldex Packaging Solutions to Coveris,” said Gary Masse, Coveris CEO. “As the global demand for our products continues to increase, Elldex will allow us to serve our customers in this important region of the world.”
Chicago-based Coveris, formed in 2013 by the amalgamation of packaging companies Exopack, Britton Group, Kobusch, PACCOR, Paragon Print & Packaging, and Kube Tech – under the ownership of Sun Capital Partners - is the sixth largest global plastic packaging company in the world with total revenues close to US$3 billion. Last year, the company acquired two UK firms, St. Neots Packaging and Learoyd Packaging.
Coveris employs almost 10,000 staff and manages 65 plants across North America, Europe, the Middle East and China.
Meanwhile, in other packaging sector news, Amcor Flexibles Asia Pacific has completed its acquisition of Zhongshan Tiancai Packaging Company, expanding Amcor’s footprint in China to a total of ten manufacturing plants.