Packaging Sector Comes Alive as Coffin Maker Acquires Global Branding Company – March 2014 M&A Activity
One way to move into packaging is to buy your way in. Transcontinental did exactly that by acquiring flexible packaging printer Capri Packaging. Transcontinental has been seeking to diversify, due to the decline in demand for its primary products: magazines, newspapers, and books. As Transcontinental noted in its press release, it believes that the printing processes used in flexible packaging are similar to their existing competencies. Although the full details of the transaction were not made public, based on its stated goal to jump into flexible packaging, the acquisition looks like a smart deal for Transcontinental. As a kicker to the deal, the former owner of Capri Packaging, Schreiber Foods, which provides 75% of Capri’s total revenues, has committed to use the newly spun off Capri for the next ten years. Nice way to learn the business, albeit at what appears to be a steep price at 1.85 times revenues.
Strine Printing, in York, Pennsylvania, chose instead to evolve from its beginnings as a purely commercial printer, adding packaging and retail display expertise over the years. That transition was complete enough to attract the attention of Menasha Packaging. Headquartered in Neenah, Wisconsin, and with a sharp focus on retail packaging and display, Menasha announced that it has acquired Strine Printing. Measured by the number of employees, Menasha Packaging is approximately seven times the size of Strine, and has 11 manufacturing locations.