Elopak grows presence in MENA region with Naturepak Beverage acquisition
Elopak is reinforcing its presence in growth markets and investing in profitable growth with the acquisition of Naturepak Beverage Packaging Co Ltd, the leading gable top fresh liquid carton and packaging systems supplier in the MENA region.
(Oslo, 13 October 2021) Elopak ASA (“Elopak”, ticker “ELO”) has signed a Share Purchase Agreement to acquire 100% of Naturepak Beverage from Gulf Industrial Group Company Plc and Evergreen Packaging International LLC (Evergreen Packaging), a wholly owned subsidiary of Pactiv Evergreen Inc.
Naturepak Beverage is the leading provider of fresh liquid carton and packaging systems in the MENA region with local production facilities in Morocco and Saudi Arabia, which will be integrated into Elopak’s global production network. Present in 16 countries, Naturepak Beverage has an annual production capacity of 2.7 billion cartons across various product sizes and its customers are global blue chip FMCG players and strong regional champions.
The acquisition will reinforce Elopak’s position in the region and is an important milestone in management’s ambitions to target 2-3% organic revenue growth, deliver inorganic opportunities and grow its global footprint by entering new geographies.
Commenting on the acquisition Thomas Körmendi, Chief Executive Officer of Elopak, stated:
“This transaction represents an important part of the growth ambitions we outlined to our shareholders during our IPO this year. I am proud to take ownership of what we deem to be one of the highest quality assets in the region and to welcome the employees of Naturepak Beverage to the Elopak family. By establishing a presence in Morocco and Saudi Arabia we can access important growth markets and deliver Elopak’s brand portfolio to key local and international players. The transaction reflects our strong commitment to growth in the Middle East and Africa”.
Following the acquisition, Naturepak Beverage will be rebranded and incorporated under the Elopak name. The acquisition provides a strategic customer base in the fresh beverage carton segment, primarily in Morocco in fresh dairy, and gives access to growth markets in an attractive region.
Going forward Naturepak Beverage’s client base will have access to a wider fresh and aseptic product portfolio and innovative, sustainable packaging solutions developed by Elopak, with Elopak leveraging its Pure-Pak® carton portfolio and utilizing its technical expertise to drive further growth across products, segments and markets.
About the acquisition
Elopak will acquire Naturepak Beverage for a cash free debt free purchase price of $96 million (€83 million). The transaction will be funded through a combination of available cash balances and credit facilities. The transaction is expected to be accretive to Elopak’s growth, margins and earnings per share upon completion.
The completion of the transaction is subject to a number of closing conditions, including Saudi Arabia and Morocco antitrust approvals. Both companies will continue to operate on a business-as-usual basis until closing.
About Naturepak Beverage
Naturepak Beverage provides filling systems to customers in the MENA region where it is present in 16 countries. Its offering consists of fresh gable-top cartons and filling machines, accompanied by technical support and service. Naturepak Beverage has an annual production capacity of 2.7 billion cartons across various product sizes. Its customers are global blue chip FMCG players and strong regional champions. In 2020, Naturepak Beverage’s sales were approximately $40 million (€35 million) and it employed approximately 140 people.