The deal will help IFCO to enter the Baltic region to serve Lithuania, Latvia, and Estonia and provide reusable packaging containers for the fresh grocery supply chain
Germany-based IFCO has announced the acquisition of Vilnius, Lithuania-based reusable packaging container (RPC) pooling services company PlasticPack.
The financial terms of the deal were not revealed.
PlasticPack provides reusable packaging in the meat and dairy supply chains in Lithuania.
The deal will help IFCO to enter the Baltic region to serve Lithuania, Latvia, and Estonia and provide reusable packaging containers for the fresh grocery supply chain.
With this deal, PlasticPack will broaden its product offering beyond dairy and meat to also include fruit and vegetable RPCs to retailers and growers.
IFCO claimed that the RPC pooling services company will become the first to provide foldable reusable packaging for fruits and vegetables in the Baltics region.
The German firm will increase the usage of reusable packaging in the area in order to further advance its goal of making the fresh grocery supply chain sustainable.
PlasticPack managing director Eugenijus Michalauskas said: “We are really excited about the opportunity to join the IFCO team, allowing us to grow our thriving business and to expand into new verticals to complement our service offering.”
Customers in the region are expected to profit from IFCO’s worldwide know-how of the circular economy and provision of reusable packaging in addition to the region-wide coverage offered in the Baltics.
According to IFCO, combining both firms will bring together regional and international operating knowledge, enhancing customer service, and giving the enlarged entity the financial support to grow.
The RPC pooling services company will use the highest customer service standards to shorten lead times, increase RPC availability, and simplify the buying and billing processes, said IFCO.
As reverse logistics and transportation efficiency continue to advance, customers will gain more advantages and will be able to lessen the environmental effect of their operations, the German packaging containers maker added.
IFCO CEO Michael Pooley said: “Through this strategic transaction we look forward to welcoming PlasticPack into IFCO’s global business portfolio.
“In addition, we are excited to apply our circular economy pooling model in the fresh grocery supply chain, which will bring much needed cost and environmental savings in the Baltic region.”