On 30 April 2021, Constantia Flexibles announced the signing of an agreement to acquire the packaging producer Propak located in Dücze, Turkey. Propak is a leading player in the European packaging industry for the snacks market operating out of one plant with approximately 360 employees and will complement Constantia Flexibles’ packaging solutions portfolio. The acquisition elevates Constantia Flexibles to one of the main players in the European snacks market.
This acquisition enables strong synergy potentials and is a sizable step in Constantia Flexibles’ film packaging presence in a growing market segment. Propak has delivered a very strong historical financial performance. It is highly complementary to Constantia Flexibles’ existing site in Turkey, Constantia ASAS, adding flexo printing capabilities and access to an adjacent market segment. It significantly reinforces Constantia Flexibles’ position with the key customers in this market and furthermore, increases future potential for business growth.
Pim Vervaat, CEO of Constantia Flexibles, states, “The acquisition of Propak fits perfectly in our Vision 2025 growth strategy and brings Constantia Flexibles a good platform in the growing European snacks market. It will also give us the opportunity to accelerate our more sustainable EcoLam Mono-PE innovation for the salty snacks market. I am looking forward to working with the management team at Propak in helping to bring the company to the next level.”
The transaction is expected to be completed in Q2 2021, pending regulatory approvals.
Incremental update on Constantia Flexibles
There have been a flurry of stories in the last couple of weeks about Constantia Flexibles new investments, acquisitions and expansion in its plants. Three stories that come to mind are the company’s investment in a 5-layer blown film line at the Kolkata plant that it acquired when it acquired multi-locational flexible packaging printer and converter Creative several years ago.
Our readers are also aware of its acquisition of Parikh Packaging in Ahmedabad and the subsequent building of the brand new greenfield venture with Parikh to manufacture its Ecolam PE-based recyclable packaging also near Ahmedabad. Subsequently, the Parikh family divested its entire holdings in Constantia-Parikh.
Last week also brought the news of Constantia opening its new plant in Copenhagen with considerable flexible packaging capacity for the Scandinavian market. The new plant which was commissioned in March 2021, will triple the company’s capacity for Scandinavia and has automation and environmentally relevant features including the generation of green electricity and the plan to manufacture sustainable structures that it calls Ecolutions.