Evergreen Asia is a supplier of filling machines, cartons, closures and after-sales service in the chilled segment, covering dairy and non-carbonated soft drinks
Switzerland-based packaging company SIG has completed the acquisition of Pactiv Evergreen’s Asia Pacific chilled carton operations, Evergreen Asia.
The deal, announced in January this year, includes the sale of Evergreen’s carton packaging and filling machinery businesses in China, South Korea and Taiwan to SIG Group.
The business will be completely consolidated starting this month.
Evergreen Asia is a supplier of filling machines, cartons, closures and after-sales service in the chilled segment, covering dairy and non-carbonated soft drinks.
The business generated sales of approximately €135m and adjusted EBITDA of about €24m for the 12 months ending 31 December 2021.
It was acquired for an enterprise value of $335m and SIG anticipates realising run-rate cost synergies of about €6m.
SIG said that the acquisition opens up new growth prospects in Asia, where there is a tremendous increase in demand for fresh milk, particularly in China.
Evergreen Asia gives SIG access to new clients on a regional and local level and the opportunity to strengthen its current customer ties with national dairies.
SIG wants to develop new advanced packaging formats in this market segment by utilising its R&D know-how, innovation skills, and marketing know-how.
SIG Asia Pacific North president & general manager Lidong Fan said: “Evergreen Asia is an exciting addition to our business.
“With chilled carton packaging, we can offer our customers an even more comprehensive range of products.
“Together, we will also continue to innovate and provide safe and sustainable packaging that consumers expect today and in the future.”
Pactiv Evergreen chief executive officer Michael King said: “With most of our assets being in North America, we provide an extensive offering of North American-manufactured products to our customers.
“This transaction positions Pactiv Evergreen to further focus on our growth in North America where we are established as a leading manufacturer of fresh food and beverage packaging, servicing many of the world’s most beloved brands.”