Plastics News’ Post

International bidding war brewing for UK packaging firm US-based International Paper puts in £5.7bn takeover proposal for DS Smith, gatecrashing Mondi Group offer An international bidding war is brewing for the UK packaging company DS Smith after a US-based paper producer put forward a £5.7bn takeover proposal, gatecrashing a deal it had agreed with the British rival Mondi. DS Smith confirmed it was now in talks with International Paper, which is one of the largest paper and pulp companies in the world, over an all-stock offer, which would trump the £5.14bn deal put forward by Mondi earlier this month. The news could lead to a bidding battle between both companies after Mondi agreed its all-share takeover deal in principle on 7 March. Shares at DS Smith rose 7.4% in early trading on Wednesday off the back of the proposal from the Tennessee-based papermaker. Under the terms, DS Smith shareholders would receive 0.1285 shares in International Paper for each share they own in DS Smith. If the proposed deal goes through, DS Smith shareholders will own just over a third (33.8%) of the combined company. Founded in east London in the 1940s as a box-making business, DS Smith has grown to become a market leader in packaging and paper products, and now operates in 30 different countries and employs more than 30,000 people. DS Smith said it was continuing discussions with Mondi, based in Weybridge in Surrey, over its offer to create a UK-based packaging company worth more than £10bn. Previously both companies had said the deal was an exciting opportunity to create a pan-European industry leader in paper-based sustainable packaging solutions. Commenting on the International Paper offer on Tuesday, DS Smith said: “The board acknowledges the strategic merits and potential for value creation through a combination with International Paper. “Accordingly, the board is progressing its discussions with International Paper regarding the proposal.” International Paper said that a combination between both companies would create a truly global leader in sustainable packaging solutions that is well positioned in an attractive and growing market. It added that it would result in significant value creation for International Paper and DS Smith shareholders. #pulpandpaper #pulpandpaperindustry #ieee #ias #ppic

Big news in the packaging industry! DS Smith has been taken over in a global acquisition. The question is: will this make a difference to the sector? The industry is now faced with new competition, but can they cope? Only time will tell. Stay tuned for updates! #packaging #sustainable #competition Link to the article: https://lnkd.in/eAi_r2RM

How will you navigate your most significant challenges and opportunities in 2024? 💡 Growing up on a farm, CEO of American Plastic Molding Corp. Alan Myers, learned to create order out of chaos. And when it came to leading his company, he swiftly navigated challenges by transforming setbacks into opportunities for efficiency and innovation. His ESOP’s shareholder value increased by 40%, revenue surged 29% and profit increased 151% on average over three years.  #GrowthMindset #PowerOfPeers #CEOPeerGroups #FortWorthTX

M. Holland Company Sells Majority Interest to Ravago In a strategic move, M. Holland Company, a top-tier distributor of thermoplastic resins, has entered a partnership with the global polymer powerhouse, Ravago. This partnership will see Ravago securing a majority interest in M. Holland. This collaboration is poised to supercharge M. Holland's growth trajectory, equipping it with the resources and scale necessary to navigate the dynamic landscape of the plastics sector. While the specifics of the deal remain undisclosed, the Holland family will maintain a substantial minority stake in the company. Post-acquisition, M. Holland will retain its operational independence, functioning as a subsidiary under the Ravago Group. The current leadership of M. Holland, spearheaded by CEO Ed Holland and President Marc Fern, will remain intact. Ed Holland commented on the partnership, "Aligning with Ravago Group, a like-minded entity, ensures a robust future for M. Holland. This collaboration is a testament to our commitment to our stakeholders and charts a course for M. Holland's continued success." While Jim Duffy, CEO of Ravago Holdings America, expressed similar enthusiasm as well. Marc Fern added, "This alliance with Ravago Group not only retains M. Holland's brand integrity but also propels us into our next growth phase." Both M. Holland and Ravago have witnessed growth through strategic acquisitions in recent years. M. Holland boasts annual sales exceeding $1.5 billion, serving over 70 countries. Meanwhile, the larger Ravago, headquartered in Luxembourg, operates in over 55 countries, employing 8,000 across its vast network of manufacturing facilities and moves some 15 billion pounds of materials annually. This partnership between two industry giants is set to reshape the plastics distribution landscape, promising growth and innovation in the years to come. --The Plastics Exchange

KRT: A successful story of astute decision making and management Karat® by Lollicup™ Packaging Inc (KRT) announced 2Q23 earnings 8/10 after the close: - raised gross margin expectations for 2023 by 500 bps - announced special dividend and newly approved quarterly dividend - moving-up plans to deploy new warehouse development KRT since 8/10: +12% KRT since achaion.com/krt/ post: +59% Right place, right time, right management: The eco-friendly disposable product movement in parallel with strong company/investor-friendly decision making is a great example of advantageous positioning and flexible management KRT and its industry are ones to watch over the next few quarters. It will be interesting to see if competition increases to chase these kinds of margins and returns Before you get into the weeds and you want to get a brief on the company, check out the attached post If you would like an in-depth write-up, feel free to reach out to me at [email protected] Employ your curiosity #KRT #valueinvesting

Today, International Paper (IP) and DS Smith announced an agreement for a recommended all-share combination, expected to close by Q4 2024 To get access to exclusive premium content, become a Packaging Europe member: https://lnkd.in/em_Jz4_Q Follow our hashtag to stay up to date with the latest packaging news: #PackagingEurope

Ball Corporation is selling its aerospace business to BAE Systems for gross proceeds of $5.6 billion in cash, the company announced Thursday. Ball acknowledged in June it was possibly exploring a sale. Ball CEO Dan Fisher said in an announcement that the divestiture will allow the company to increase its focus on “low-carbon, best-value aluminum packaging initiatives.” It intends to use part of the proceeds to reduce net debt leverage, and increase shareholder returns via stock buybacks and dividends. Its aerospace sales were $1.98 billion in 2022, versus beverage packaging sales of $12.66 billion. The deal is expected to close in the first half of 2024 subject to regulatory approvals. Focusing on a organization core competencies is more effective way to manage capital and cash flow as part of managing the integrated planning and reporting cycle. This also ties nicely to a few blogs that I have written on packaging area, especially how it the packaging sector is moving towards greener packaging. Blog - Recycling more food service packaging needs supply chain support, experts say - Food Packaging Institute - https://lnkd.in/gks_Urzy   Blog – Sector – Manufacturing – Food and Beverage – Single Use Cups and Straws – Pepsi - https://lnkd.in/gBUQxSSy   Blog – How best to manage Plastic Packaging Utensil, Medical Supplies, and Straws - https://lnkd.in/gGYFG4fZ   #packagingsolutions #biodegradable #singleuseplastics #biodegradablepackaging #plasticsindustry #recyclingindustry    

Will the packaging industry unbox growth? Packaging companies are uniquely poised for growth, but we anticipate it will only be achieved by those who can effectively execute five key Strategic Initiatives. #packaging #strategicinsights #growthstrategy