Liqui-Box has to divest DS Smith’s certain bag-in-box product lines as a regulatory condition
TriMas has agreed to acquire Rapak brand from Liqui-Box (Credit: Adam Radosavljevic from Pixabay)
US-based TriMas has agreed to acquire Rapak brand and certain bag-in-box product lines and assets from Liqui-Box for an undisclosed sum.
The sale of Rapak brand and certain assets will allow Liqui-Box to move forward with its acquisition of the plastics packaging division of DS Smith.
In March 2019, Liqui-Box agreed to acquire DS Smith Plastics for an enterprise value of around $585m.
To fulfil the regulatory conditions, Liqui-Box has agreed with the US Department of Justice (DOJ) to complete the acquisition of DS Smith’s plastic division.
As a regulatory condition, Liqui-Box has to divest DS Smith’s certain bag-in-box product lines that overlap with the company’s current product lines.
TriMas to acquire Rapak brand name for its use across the globe
To meet the regulatory requirements, TriMas has agreed to purchase the Rapak brand name for its use across the globe, as well as bag-in-box product lines related to dairy, soda, smoothie and wine product applications.
TriMas will also secure global ownership rights for the Mustang wine bag-in-box dispensing products, in addition to purchasing the Rapak brand name, certain dispensing innovation and aseptic application products and capabilities.
Featuring a bag fitment with the lowest oxygen transfer rates in the market, Mustang product line is claimed to be suitable for wine and other bag-in-box packaging applications.
TriMas will also acquire Autokap and Stericap brands and product lines, and expertise required to produce IntaSept filling machine products.
Also, TriMas will acquire manufacturing facilities situated in Indianapolis of Indiana, Union City of California, and a new facility in the greater Chicago and Illinois area.
Subject to Liqui-Box’s successful completion of its acquisition of DS Smith’s plastics division and other closing conditions, the deal is expected to be completed in early 2020.
TriMas president and CEO Thomas Amato said: “We are pleased to be adding the Rapak brand name and bag-in-box applications and products to TriMas’ packaging portfolio.
“This product adjacency allows TriMas to participate in this socially responsible trend of liquid packaging solutions, while also leveraging our strength in advanced closure and dispensing technology.”