Private equity investor Advent International has signed an agreement to acquire Danish food packaging company Færch Plast A/S (Færch Plast) from private equity fund EQT VI. Financial terms of the transaction have not been disclosed.
Færch Plast is a Danish packaging company that holds a leading position within rigid plastic packaging for the food industry. The company has over 40 years of experience in developing, designing and producing innovative and high-quality packaging for the ready meal, “food-to-go” and fresh meat markets. The business model combines a superior quality and service proposition with an industry-leading cost position and a broad range of innovative packaging solutions.
Advent brings significant operational resources, capital and sector expertise, which will help accelerate Færch Plast’s growth and strategy to expand its international footprint organically and through add-on acquisitions. The fragmented packaging market provides an opportunity to drive further consolidation and Advent will build on Færch Plast’s established, innovation platform to enhance its position as a European market leader. A particular area of focus will be the expansion into France, Spain and Germany, and supporting food retailers, who are keen to achieve differentiation through new and innovative packaging solutions.
This transaction marks Advent’s latest investment in the packaging sector following its recent acquisition of Fort Dearborn, a leading supplier of prime labels for blue chip and middle-market consumer packaged goods companies in the US.
Ranjan Sen, Managing Partner at Advent International, says: “Short shelf life food packaging is an attractive segment of the market with strong long-term prospects. As convenience becomes increasingly important in all areas of everyday life, the demand for ready meals and ‘food to go’ will continuously gain momentum. Færch Plast is well positioned to benefit from these trends and to continue to serve its customer across Europe.”
Benjamin Buerstedde, Director at Advent International, added: “Færch Plast’s outstanding reputation in the marketplace, its dedicated management and its strong operational set-up make this an exciting investment opportunity. We look forward to working with the management team to further grow the business.”
Lars Gade Hansen, CEO of Færch Plast, says: “We are very pleased to have Advent as our new partner. Advent’s operational and strategic resources as well as its global network will allow Færch Plast not only to continue its long heritage as innovation leader, but will also help the company to grow internationally.”
The acquisition of Færch Plast is subject to approval by the relevant competition authorities.
