The agreement between VPK Packaging Group and NPAC International Inc. - a company controlled by Madison Dearborn Partners - is for the acquisition by VPK of Corenso's European and Chinese activities, consisting of two coreboard mills and 13 core converting plants. The activities of Corenso in North America will continue to be owned by NPAC International. The agreement remains subject to customary conditions and is expected to be completed in second quarter of 2019.
VPK's core and tube division, marketed under the Corex brand, has 14 sites for the production of industrial cores and tubes for winding paper, foil, textiles and metal. In addition, Corex also produces composite cans used for packing food, snacks, spices, cosmetics and spirits.
The European and Chinese businesses of Corenso include 2 coreboard mills located in Finland and France, together with a network of 10 core and tube winding plants in Europe and 3 in China. Combined turnover is 170 million euros. Corenso has 850 employees in Europe and China.
Following completion of the acquisition, the core and tube division will represent 260 million euros or 16% of VPK's group turnover, with a total conversion capacity of 285.000 tons. Total production capacity of coreboard corresponds to 300.000 tons.
The acquisition of Corenso broadens the geographical spread to regions where VPK has not been active to date. Important new markets are Finland, Spain and China. Based on a customer-oriented vision, VPK Packaging Group wants to offer an answer to the global demand for cardboard cores and tubes.
CEO Pierre Macharis: "Corex and Corenso have made an impressive journey over the last decade. We are delighted to join forces to provide a wider geographical coverage while making optimum use of the network and the expertise of VPK. Our customers can rely on unique quality and service offered by Corex and Corenso. By integrating two additional paper mills, we also provide a strategic, geographical axis for raw material supply from Finland via Belgium to the south of France."
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