The acquisition has been agreed upon for a cash sum of $455m and is expected to be complete in the first quarter of 2015, once regulatory requirements are given.
The deal represents Essentra’s largest acquisition to date, but also extends the realms of its current business portfolio, both with respect to product offerings and geography.
North American and European presence
Clondalkin has 24 facilities situated throughout North America and Europe, and is a leader in secondary packaging for the personal care category.
The company says that the acquisition will help to broaden its geographic reach in these two regions, while also increasing its specialty packaging division’s expertise in a range of technologies that support high quality output and the versatility to tackle a range of solutions.
It is also in line with Essentra’s strategy to derive organic sales growth through value-added acquisitions that are in line with its targeted end-markets.
New move in to personal care
The company is already present in health care packaging, but Clondalkin SPD presence in the pharma and personal care categories will offer the business new market expansion opportunities.
Specifically, Essentra says that its capabilities in packaging and authentication are particularly complimentary to the folding carton, product literature and labeling capabilities of the new business.
“Clondalkin SPD is a highly attractive business, with a focus on the growing health and personal care industries, and a comprehensive offering of high quality, innovative and mission critical products to meet the exacting requirements of an international customer base, which is increasingly seeking a global partner for their packaging solutions,” said Malcolm Waugh, Essentra Group commercial director.