Sun European closes Kobusch-Sengewald deal as Pregis completes business refocus

Sun European Partners announced it has completed the €160m takeover of packaging company Kobusch–Sengewald from Pregis Corp.

The private equity outfit said the acquisition would boost its European packaging portfolio and was part of a long-term plan to increase its assets in a sector that its sees as ripe for growth.

Kobusch-Sengewald manufactures bespoke, plastic–based flexible and semi–rigid packaging products for the food, chemical, hygiene product and medical sectors.

It has over 1,100 employees across six sites in Germany, Egypt and the UK. The firm’s range of products includes flexible films, ready–made bags, pouches and sleeves.

One-stop shop

“The business benefits from its unique technical capabilities, custom–made product offering, and geographical presence providing a ‘one–stop–shop’ of tailored solutions to customers across multiple jurisdictions,” Sun European Partners said.

Kobusch-Sengewald chief Borge Kvamme said the company was excited about the prospect of becoming an independent company in the European packaging market.

Sales for the firm for the 12 months ending September 2011 reached ¼211m, with an adjusted EBITDA just under €25m.

The deal is the latest in a string of packaging acquisitions for Sun European. The company bought out Huhtamaki’s rigid packaging operations at the end of 2010 followed, a few months later, by the takeover of the Britton Group. In summer 2011 it created a rigid packaging unit called PACCOR. In August it purchased Austrian outfit Unterland Flexible Packaging from Mondi.

Refocused Pregis

Pregis, former owner of Kobusch–Sengewald, announced the appointment of a new CEO and appeared to signal the end of its divestment programme undertaken to cut debt and sharpen its business focus. The US based company had previously sold its Hexacomb business to Boise.

The firm said Kevin Baudhuin has been appointed President and CEO from January 1, 2012 –replacing Glenn Fischer, who had held the position since February 23, 2011.

"Pregis has strategically realigned its business by divesting itself of certain operating units,” said Baudhuin commented. “This will enable the company to focus on growing its core protective packaging business. Our objective is to provide value-added protective packaging solutions.”

Source: Sun European Partners