The Crewe-based business is to be managed by investment firm Sullivan Street Partners, and employs over 100 staff, producing printed cartons, leaflets and labels.
The transaction was an undisclosed fee.
Medica has a strong heritage of specialist pharmaceutical and healthcare carton packaging services going back to 1922 and at one point was part of the Wellcome Foundation.
Benson Group acquired the business in 2005, which is now owned by Graphic Packaging International to form a global food packaging group.
Medica said the separation allows the two businesses to “focus on what they each do best”.
Medica Packaging said it would be focusing on providing specialist cartons, leaflets and labels to the healthcare and pharmaceutical sectors.
John Bath has been appointed the new chief executive, and has 25 years of leadership experience in the packaging industry including work at Rexam Medical Packaging, PCI Europe, Brecon Pharmaceuticals and United Drug’s European Packaging Group.
Bath said: “I have known Medica for many years and admired the company’s reputation. The investment and new clarity of purpose is inspirational for our people, meeting our vision to become the most highly valued provider to the demanding markets we serve.”
The new owners are private individuals, investing through Sullivan Street Partners who seek long term investments in UK businesses. Richard Sanders, a representative of the investor group said: “We are delighted and privileged to have acquired Medica Packaging Limited. The industry leading skills, knowledge and experience of Medica’s team are at the heart of our plans for the future and provide the perfect starting point for growth over the long term.”
Nicholas Mockett, M&A and corporate finance expert at Moorgate Capital, told Packaging News: “The attractions of the pharmaceutical packaging segment have been recognised by strategic and financial investors with a series of deals in the last couple of years such as Essentra’s acquisition of Contego Healthcare and Carlyle’s investment in Chesapeake. This investment by Sullivan Street Partners is the latest M&A deal in the pharmaceutical packaging sector.”
