Ileos to sell folding cartons business to MM Packaging for €80m
The folding carton business serves the luxury markets such as premium fragrance, as well as high-end beverages, which are benefitting from the growing middle class in emerging markets and the move to premium products in established markets.
France-based Ileos has served the cosmetics, pharmaceuticals and beverage markets for a number of years, designing and manufacturing plastic, metal and cardboard packaging solutions, and has been owned by investment company Oaktree Capital Management since December 2011.
The company has two sites producing folding cartons for luxury articles and cosmetics, along with five sites producing folding cartons for the pharmaceutical industry, which helped Ileos sales reach €115m in 2014.
As per this deal, Ileos says it received a binding offer for the printing activities of its graphic division comprising Alliora, although not for the setup boxes assembly activity, and Packetis.
The setup boxes assembly activity will remain part of the Ileos Group and Paul Quéveau will serve as managing director of this new subsidiary.
Ileos will remain in full control of the Axilone business which serves the cosmetics and france markets with metal and plastic solutions.
Subject to approval
The parties will enter into a definitive transaction agreement once the works’ council consultation process in France is completed. The transaction will be subject to customary closing conditions and regulatory approvals.
MM Packaging is a coated recycled cartonboard firm with a growing position in virgin fiber based board and a major European manufacturer of folding cartons.
Nicholas Mockett, head of Packaging M&A (mergers and acquisitions) at Moorgate Capital advisory firm in London told our sister publication, FoodProductionDaily, this latest development follows similar transactions over the last two years including the sale of Contego Cartons to Graphic Packaging; the acquisition by Carlyle of Chesapeake; the sale of Benson Box to Graphic Packaging and the sale of Clondalkin Specialist Packaging to Essentra.
According to the Ileos website, its clients include L’Oréal, Unilever, Puig and L’Occitane.
