UK-based self-adhesive label manufacturer Chesapeake Services has signed an agreement to merge its business with print-based specialty packaging supplier Multi Packaging Solutions (MPS).
With the merger, the companies expect to create a global provider of print-based specialty packaging.
The company is expected to have sales of over $1.4bn on a pro forma basis, while employing over 7,000 people across the 50 manufacturing facilities situated on three continents.
The company will supply packaging solutions including printed folded cartons, labels, inserts/leaflets, rigid boxes and packaging for pharmaceutical/healthcare, consumer, personal care, confectionery, spirits and multi-media end-markets.
MPS CEO Marc Shore said the combined manufacturing footprint and technological capabilities will position them to match their customers' needs.
"The ability to produce these goods and services in the United States, Europe and China will also give our customers consistency on a global basis," Shore added.
The merger is expected to be closed in first quarter of 2014, after which shares of the combined company will be divided equally between funds managed by The Carlyle Group and Chesapeake management and investment funds advised by Madison Dearborn Partners, which owns MPS.
Newly formed company is expected to experience growth in emerging markets, including from a current facility in China, while its operations are divided between the US and nine countries in Europe.
Image: The combined company will supply printed folded cartons, labels, inserts/leaflets, rigid boxes. Photo: Courtesy of aopsan /FreeDigitalPhotos.net
