LBP combines material science, equipment and converting technology to develop consumer-preferred, sustainable, paper-based food packaging for its clients
US-based food packaging solutions provider Sabert has agreed to acquire LBP Manufacturing, a producer of environmentally progressive and sustainable food and beverage packaging.
Sabert said that the acquisition of LBP is expected to increase its annual sales to $900m with about 3,000 employees across the world.
LBP develops consumer-preferred, sustainable, paper-based food packaging by combining the innovation in material science, equipment and converting technology. It has manufacturing facilities in the US, Poland, and China.
The company is famous for its Coffee Clutch hot cup sleeve and Beverage on the Move a beverage to-go carrier along with a variety of unique catering trays, folding cartons, clamshells and other containers.
The transaction is expected to close in early December 2019
Sabert founder and CEO Albert Salama said: “Sabert’s success has always been based on our deep-rooted commitment to providing innovative and sustainable solutions to meet our customers’ needs.
“LBP’s customer-centric culture and superior track record of developing performance-driven products that respond to their customers’ needs makes them a great fit to join our organization.
“As a leader in paper-based packaging, LBP’s strong position in the Quick Service Restaurant channel combined with Sabert’s sales network and global presence will allow the new organization to deliver tremendous value to the market, enabling us to achieve our vision of being the most admired company in our industry.”
Financing for the acquisition was committed by JPMorgan Chase Bank, Wells Fargo Securities, SunTrust Robinson Humphrey and Nomura Securities International while JPMorgan Chase Bank will serve as the administrative agent for the financing.
Subject to closing conditions and regulatory approvals, the transaction is expected to complete in early December 2019.
LBP CEO Matt Cook said: “Both companies have a long-standing history of combining innovation, sustainability and customer-centric product development to provide high quality solutions that meet the evolving needs of our customers.
“We look forward to working with the Sabert team in building an even more comprehensive packaging company with a shared mission of enhancing the way people enjoy food and beverages.”
In June this year, LBP acquired a food packaging company Union Packaging to expand its folding carton capabilities.