In the first quarter of 2013 Constantia Flexibles, headquartered in Vienna, has continued its growth strategy with three acquisitions. In January Globalpack, the market leader for flexible packaging and folding carton in Mexico was bought. The company supplies mainly the consumer goods industry for daily needs in food and beverages.
1,500 employees at two production sites in San Luis Potosí and Monterrey achieve sales of EUR 180 million. The acquisition constitutes an excellent complement in the product portfolio, access to new customers in North America as well as a strong presence in the growth market Central America.
In February a contract for the purchase of the Spear Group in the US, one of the globally leading labels producers, was signed. The company has been technology leader for 30 years in the growth market of pressure-sensitive labels for the beverage industry. Spear achieved sales of EUR 150 million with 650 employees at four sites in North America and one each in Wales/UK and South Africa. The acquisition creates a
strong basis in the attractive US market as well as for further expansion in the global labels market. The acquisition is subject to approval of certain anti-trust regulators.
At the end of March the agreement on the purchase of 60% of Parikh Packaging in India could be signed. The company has sales of EUR 22 million and 500 employees at the location Ahmedabad north of Mumbai in the state of Gujarat. Parikh Packaging is among the top ten suppliers of flexible packaging in India and like Globalpack delivers to the consumer goods industry for products of daily need. With its steadily increasing middle class India is the world´s fastest growing market for flexible packaging with approximately 15% per year. The closing is subject to regulatory approval.
Thomas Unger, CEO of Constantia Flexibles at a press conference in Vienna on April 22: „With these acquisitions we could make an important step towards globalization of our Group. This will also open new growth potentials in attractive markets. With this we can support the growth of our international key customers in the markets even better. We are happy to welcome more than 2,600 new colleagues in our Group.
To integrate these companies for the benefit of our customers and employees is a very rewarding task. We aim at creating „win-win“ situations, from which all stakeholders can benefit.“
Constantia Flexibles has a lot of experience with acquisitions. Since 1990 approximately 20 companies were bought and successfully integrated. In the last nine years an average growth of 8% per year could be achieved both in sales and earnings at an EBITDA margin of 14%. Medium-term goal is to get beyond EUR 2 billion in sales.
The business model is an attractive combination of stability due to products close to daily consumer demand and growth potentials from the development of new middle classes in emerging markets and other trends. This is done on the basis of a solid financial structure with good profitability and a strong capital basis.