The combined company will have sales of more than $1.4 billion on a pro forma basis, employ over 7,000 people throughout the world, and operate from more than 50 manufacturing facilities on three continents. The combined company will supply a broad range of packaging, including printed folded cartons, labels, inserts/leaflets, rigid boxes and specialist packaging for the pharmaceutical/healthcare, consumer, personal care, confectionery, spirits and multi-media end-markets. The vast majority of operations are divided between the United States and nine countries in Europe. The combined company will also have a growing presence in emerging markets, including from an existing facility in China.
Marc Shore, MPS’s CEO, said: “Joining these two companies will greatly benefit our customers and employees. The combined manufacturing footprint and technological capabilities are truly unique and will position us to match our customers’ needs with a broader range of products and operational flexibility. The ability to produce these goods and services in the United States, Europe and China will also give our customers consistency on a global basis.”
Mike Cheetham, Chesapeake’s CEO, said “I’m excited about the prospects this transaction offers for our collective customers, employees and suppliers. Both companies have benefited from a strong ongoing investment program and will continue to invest in order to deliver on the considerable growth opportunity this merger presents.”
Marc Shore has been appointed CEO of the combined company. Mike Cheetham and Dennis Kaltman, current MPS President, will be co-Presidents and will serve with Marc on the Executive Committee responsible for overseeing the integration and growth of the combined company.
Upon completing the merger, ownership in the combined company will be split evenly between funds managed by global alternative asset manager The Carlyle Group and Chesapeake management, who currently collectively own 100% of Chesapeake, and investment funds advised by Madison Dearborn Partners, LLC and MPS management, who currently collectively own 100% of MPS. Completion of the merger is subject to customary closing conditions, including regulatory approval. It is anticipated that the merger will close during the 1Q 2014.
Chesapeake is an international manufacturer of consumer packaging. The company is a leading supplier of printed folding cartons, leaflets and labels, as well as other specialist packaging to the pharmaceutical, confectionery, spirits and food markets.