Folding carton and flexible packaging products manufacturer AR Packaging has started the process to prepare for an initial public offering (IPO).
The company’s core markets are in the folding carton and the flexible packaging in Europe.
AR Packaging is a group of the specialized companies A&R Carton, Flextrus, CC Pack, SP Containers and Mediaköket. The head office is located in Lund, Sweden.
The group’s main owner is an investment vehicle controlled by funds advised by affiliates of CVC Advisers International Svenska filial. Advisors have been appointed to investigate a possible public listing of AR Packaging for future growth.
AR Packaging, which was established in 2011 via the merger of A&R Carton and Flextrus, reported better performance in recent years with both organic growth and acquisitions.
Over €600m of sales were reported in 2017. The group employs about 3.200 people across its 19 factories in 10 countries.
The folding carton manufacturer’s product portfolio of consumer packaging is used by several blue-chip companies in the food, tobacco and healthcare sectors in Europe and to some extent in Asia.
AR Packaging president and CEO Harald Schulz said: “AR Packaging has experienced strong growth over recent years and is ready to explore options for its next phase of development.
“The core objective for an IPO is to further strengthen our ability to execute our growth strategy in selected segments, both in terms of operational development and geographical expansion.”
Through the IPO process, AR Packaging plans to list on NASDAQ Stockholm during 2019. After a potential listing, the Main Shareholder expects to remain as the group’s significant owner.
AR Packaging’s business is divided into three divisions, Barrier packaging, Branded products and Food Packaging.
Some of the company’s customers include Philip Morris, Danone, Nestlé, MacDonald’s, British American Tobacco, Procter & Gamble, Burger King and Ferrero.
In 2016, ÅR Packaging Group signed a binding agreement for the purchase of a majority stake in Indonesian packaging firm PT Maju Jaya Sarana Grafika.
Adrian Koesnendar, CEO and co-owner of the family business, will continue to own the remaining shares.
Maju Jaya has a majority of the customer base in the tobacco and food segments. The company has two production sites in Bekasi (close to Jakarta, Java) and Semarang (central Java).