Berlin says that the acquisition, which was closed on November 10th, serves to strengthen the Chicago-based company’s presence in the Pacific Midwest, by adding a strong customer base in that region that amounts to $125m in annual sales.
As well as cosmetics, the company is also present in the food & beverage and wine & spirits markets, which also complements Berlin’s business portfolio.
Synergies and a bigger footprint
The acquisition will mean synergies that will help everyone in the supply chain to reduce inventory levels and lower expenses, the company stated upon completing the acquisition.
Berlin has been expanding rapidly in the North America in recent years, and the acquisition of Diablo Valley is its sixth since 2010, with the most recent addition being the Ohio-based business Vivid Packaging, which has a significant footprint in rigid packaging for various consumers markets including cosmetics throughout the Midwest region.
The Vivid Packaging acquisition falls in line with Berlin’s focus on rigid packaging, whereas the acquisition of the glass packaging capabilities of the Diablo Valley business will allow it to further strengthen its smaller glass packaging portfolio.
Solidifies position as major player
“By combining the strengths of both companies, this acquisition helps us meet our high growth goals and solidifies our position as the industry’s largest, most comprehensive, and most customer-focused rigid packaging supplier,” said Andrew Berlin, chairman and CEO of Berlin Packaging, in a press release concerning the Diablo Valley acquisition.
Berlin Packaging is rapidly emerging as one of the biggest players in the North American market, thanks to plans that aim to double its revenues by 2017 through both organic growth and strategic acquisitions.
With the most recent acquisitions, Berlin Packaging now has more than 650 employees, $1 bn in annual sales and double-digit organic growth, with a focus on solutions for personal care, as well as nutraceutical, household care and food & beverage.