A.P. Møller will acquire Faerch from funds managed by private equity firm Advent International
Faerch will be acquired by A.P. Moller Holding. (Credit: A.P. Møller Holding A/S)
Investment company A.P. Møller Holding, the parent company of the A.P. Moller Group, has agreed to acquire Denmark-based food packaging solutions provider Faerch for €1.9bn.
Under the terms of the deal, A.P. Møller will acquire Faerch from funds managed by Advent International.
Faerch produces its products from up to 100% post-consumer recycled content. The products are recyclable to new food-grade products.
Established in 1969, the company employs over 1,400 people across 11 production sites in Denmark, Great Britain, Spain, France, the Czech Republic and the Netherlands.
A.P. Moller Holding CEO Robert Uggla said: “Faerch has demonstrated that it offers a compelling, sustainable solution, by developing food packaging products with a high degree of post-consumer recycled content.”
A.P. Moller Holding CIO Jan Nielsen said: “A.P. Moller Holding will support an acceleration of Faerch’s leadership position and increase investments in additional recycling facilities to meet the high customer demand.”
Faerch Group CEO Lars Gade Hansen said: “There is a perfect fit in terms of core values and we experience full support for our strategy to drive the industry’s transition towards sustainable packaging solutions and a more circular economy.”
The acquisition is subject to approval by the relevant competition authorities.
With the transaction, Faerch expects to continue to operate as a separate company. It will also increase momentum further in the transition of food packaging towards circularity.
Recently, Faerch has acquired Sirap food packaging business in Italy, Poland and Spain from Italmobiliare for an undisclosed amount.
Faerch has acquired Sirap’s three production sites in Italy, one in Poland, one in Spain. The transaction also includes the transfer of up to 1,000 employees. Sirap Group is the specialist packaging subsidiary of Italmobiliare.
The acquisition is part of Faerch’s plan to expand its geographic presence, as well as provide customers with direct access to Faerch’s advanced packaging solutions.
The deal does not include Sirap businesses in the UK, Germany and France, as well as Petruzalek, a trading business based in Austria.