Feb 07, 2005. /Lesprom Network/. VPK Packaging Group has reached an agreement with the shareholders of the Ondulys group to increase its shareholding from 50 to 95%.
In France Ondulys has four corrugated board factories (in Lille, Paris, Rouen and Lisieux) and three corrugated board processing plants. In Poland Ondulys has developed a corrugated board processing activity near Warsaw where future investments should support growth.
VPK Packaging Group has already owned 50% of the Ondulys group since 1997. Since then VPK Packaging Group has consolidated 50% of Ondulys’ figures in its results. In 2005 Ondulys will be consolidated to the tune of 95%.
Ondulys has a consolidated turnover of Euro 120 million, and EBITDA of Euro 10 million. The Ondulys group employs 800 people.
VPK Packaging Group will build up important synergies with Ondulys and aims to further develop its presence in France and Poland through this channel. Through this transaction VPK Packaging Group confirms its strategical choice to improve its presence close to the customers in order to serve them even better and quicker.
Trading update
VPK Packaging Group anticipates recording a consolidated turnover in 2004 of Euro 395 million, up 2,6% on 2003. As already previously reported, the group is facing substantial cost increases (raw materials and energy, among others) which are difficult to pass on to the consumer in a saturated market.
At the end of December 2004 VPK Packaging Group sold its 50% participating interest in the firm Frano Packaging in Belgium, since it no longer fitted in its strategy. Frano posted a turnover of Euro 4 million in 2004.
Twinpack, the group’s specialist trading division, will start up a distribution business in the west of Poland to distribute packaging products in the specific markets in which it is already active. Therefore Twinpack will invest in real estate and converting machinery.
External growth through the acquisition of Ondulys, the start-up of the new corrugated board factory in Selby (UK) which is scheduled to occur by June 2005, and the Polish investments should lead to the annual turnover posted by VPK Packaging Group of Euro 475 million in 2005.
