AR Packaging Group is a leading European manufacturer of paperboard packaging. AR Packaging is owned by Ahlström Capital (62% of the shares), funds managed by Accent Equity (34%) and AR Packaging Group’s management (4%).
AR Packaging’s Tobacco packaging operations and all Russian operations will be acquired by Mayr-Melnhof Karton AG, an integrated Austrian manufacturer of folding cartons and coated recycled carton board.
The Specialties packaging operations, consisting of Flextrus and Lund Carton, will be divested to Weidenhammer Packaging Group.
Weidenhammer is a German company and one of the world’s two leading suppliers of composite cans, composite drums and plastic containers.
Advanced negotiations, based on a signed Letter of Intent, are under way regarding the Food packaging operations and the operations will likely be sold in a trade sale.
“The European paperboard packaging industry is in a consolidation process. There is strong business logic behind these transactions, and we are confident that the operations of AR Packaging will have matching synergies with its acquirers. Ahlström Capital has been a long-standing owner of AR Packaging, and we are pleased that the operations of AR Packaging will in the consolidating market have owners with strong capabilities to develop the businesses further. Thus, we truly believe that the transactions will be an advantageous solution for the AR Packaging employees, customers and suppliers,” says Panu Routila, President & CEO of Ahlström Capital Oy.
It is the intention of the transaction parties to have the deals regarding the Tobacco and Specialties packaging operations completed by the end of 2013 and the deal regarding the Food packaging operations completed by the end of the 1Q 2014.
AR Packaging Group is one of Europe’s leading companies in the packaging sector with a turnover exceeding Euro 400 million and 1,600 employees in 14 factories in seven countries. The head office is situated in Lund, Sweden.