Advent International acquires leading Danish food packaging company Færch Plast
- Investment in attractive growth market with long-term potential
- Further development of leading service model and innovative product portfolio
- International expansion plans to create a leading pan-European platform
- Advent brings global network and extensive experience in packaging sector
Copenhagen, June 2nd, 2017 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, 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 were not 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, commented, “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, stated, “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.
About Advent International
Founded in 1984, Advent International Corporation (“Advent”) is one of the largest and most experienced global private equity investors. The firm has invested in more than 325 private equity transactions in 40 countries, and as of December 31, 2016, had €39 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 180 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
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About Færch Plast
Faerch Plast was founded in 1969 and is headquartered in Holstebro. The company is one of the leading European manufacturer of innovative plastic packaging within Ready Meals, Fresh Meat, and Food to Go. Faerch Plast employs more than 1,000 employees, spread across six factories in Denmark, Great Britain, Spain and the Czech Republic respectively, and sales offices that cover all of Europe. The company offers state-of-the-art extrusion and thermoforming facilities generating a wide range of containers.
Faerch Plast has established an ambitious growth strategy, which has recently resulted in the acquisitions of Anson Packaging Ltd in the UK and Sealed Airs Food Tray Business in Europe with factories in Great Britain and Spain. Both companies have leading positions in the development and production of packaging for the food industry and thus offer Faerch Plast a stronger and expanded product portfolio.
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