Swedish convenient products supplier Duni has purchased a 75% stake in sustainable packaging supplier, BioPak, for around SEK410m ($45.7m).
BioPak is engaged in supplying sustainable disposable packaging for the food service industry in Australia and New Zealand. The acquired business has annual turnover of SEK385m ($42.9m).
The deal also includes a supplementary payment of around SEK24m for an additional 5% of the shares after two years and will have a put and call option for the remaining 20% of shares after five years.
The purchase price for the final 20% of shares will be based on the company’s growth and profit performance in the next five years.
BioPak CEO Gary Smith said: “BioPak is on a significant growth journey, and we look forward to partnering with Duni to grow both within and outside of the APAC region.
“Duni shares BioPak’s key values regarding sustainability and customer prioritization, which will allow for a fruitful partnership in coming years.”
In 2006, BioPak was established to provide sustainable and environmentally adapted packaging solutions to the customers in the Australian market.
BioPak, which has three subsidiaries, will be consolidated under the business area new markets segment of Duni.
BioPak will continue as a separate firm with the same name, and the founders will become part of the management team to serve the company.
Kindtoo, trading as Biopac UK, was acquired by Duni in February this year. Duni has taken the decision to transfer the shares of Biopac UK to BioPak, due to the synergies in product assortment and market approach between the two companies.
Biopac UK will be consolidated under business area meal service of Duni, enabling to expand European business.
Duni CEO Johan Sundelin said: “We have admired BioPak’s consistent promise to provide sustainable products to the food service industry, and are now looking forward to collaborating with Gary, Richard and their fantastic team in our common mission.
“This acquisition perfectly meets our strategic ambitions of growing in sustainable packaging and in building a stronger business in the APAC region.”