Thailand-based SCG Packaging has closed its acquisition of UK foodservice packaging solution provider, Go-Pak, initiating a first payment of £77.5 million.
The deal was first announced on 2 November 2020, which saw SCG Packaging subsidiary SCGP Solutions Singapore agree to purchase a 100% stake of Go-Pak from its existing shareholders.
Headquartered in Bristol, Go-Pak also operates production facilities in Southern Vietnam. The company predominately manufactures packaging for the ready-to-eat and takeaway food and beverage business in the UK, European and North American markets.
Go-Pack has an annual production capacity of 4 billion units and over 250 products categories. The firm posted full-year revenues of £68.7 million at the end of Q3 2020.
Meanwhile, SCG Packaging offers fibre-based packaging, performance and polymer packaging for a range of products including food service, with over 40 facilities across Vietnam, Indonesia, Malaysia, the Philippines and Thailand.
Following the transaction, SCG Packaging says Go-Pak will expand its foodservice packaging portfolio, while enabling it access to a customer base in the UK, Europe and North America. It will also strengthen its production and distribution capabilities to grow its position in the ASEAN market.
A first payment of £77.5 million will be issued by SCG Packaging, while a second and third payment will be based on Go-Pak’s incremental financial performance for the next two financial years, which will range from £30 million to no more than the total of £56 million.
At the time of the initial deal, Wichan Jitpukdee, CEO of SCG Packaging, said: “The transaction is in line with the strategy of expanding the client base who are manufacturers of food and consumer products and increasing the capability for downstream packaging production to reinforce the company’s strength as the leader in integrated packaging solutions provider.”
Adam Anderson, Go-Pak managing director, said: “Joining the SCG family of businesses is a very exciting prospect for Go-Pak. Not only does this mean a continuation of the great service for our customers, but being part of such a large integrated packaging group will enable us to offer further international support and a wider product range for our current and future customers in the UK, Europe and US.”
© FoodBev Media Ltd 2020
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