Liqui-Box, the Virginia-based manufacturer of plastic/cardboard bag-in-the-box packaging, which has operations in most major global markets, has agreed to sell the UK arm of its business.
UK operations, which are based in Wythenshawe, near Manchester, are set to be acquired by Peak Packaging.
Peak produces large plastic liners used for transporting various liquid products, including food and chemicals.
The agreement had to be approved by the UK Competition and Markets Authority (CMA) as Liqui-Box will follow the division sale with the purchase of the flexible and rigid plastics packaging division of DS Smith.
The CMA accepted the proposal from Liqui-Box on 30 September. It is reported that existing customers outside the UK will continue to receive goods from the Wythenshawe plant and other locations.
It is reported by Liqui-Box that the supply of products from DS Smith/Rapak will be unaffected.
“We’re happy to have clearance now in the UK and move one step closer to completing the acquisition of the DS Smith Plastics division,” said Ken Swanson, CEO of Liqui-Box. “Our team is prepared for a seamless handoff to Peak Packaging for customers in the UK and anticipate no service disruption for those outside of the UK.”
According to a report filed by Reuters earlier this year, the deal to buy the packaging division of DS Smith is worth approx. £460m.
Earlier this year, Swanson also noted that there were various synergies between DS Smith’s plastic packaging division and Liqui-Box, across the manufacturing portfolio and product range.
The combined companies will have 35 manufacturing locations across five continents, many of which have R&D capabilities for development of local products.
Liqui-Box is owned by private equity firm Olympus Partners.
DS Smith supplies packaging to a variety of major customers, including Amazon. The company is looking to move away from plastics to focus on recyclable packaging materials and corrugated products.
Swanson further stated that the combined companies will look to develop materials and process advances to support production of environmentally-sustainable products.