Belgium-based VPK Packaging Group has agreed to acquire European and Chinese businesses of coreboard and tube producer Corenso for an undisclosed sum.
Corenso, a member of NPAC International, is a producer of coreboard, cardboard tubes and cores, which can be used in a range of applications.
VPK Packaging CEO Pierre Macharis said: “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.”
As part of the deal, VPK will acquire Corenso’s two coreboard mills and 13 core converting plants, which are part of its European and Chinese businesses.
NPAC will continue to own and manage the operations of Corenso in North America.
Subject to customary conditions, the deal is expected to complete in the second quarter of this year.
VPK provides core and tube solutions under the Corex brand. The company operates 14 sites to manufacture industrial cores and tubes for winding paper, foil, textiles and metal.
The company also manufactures composite cans that are suitable for packaging of food, snacks, spices, cosmetics and spirits.
Corenso operates two coreboard mills in Finland and France, as well as 10 core and tube winding plants in Europe. The firm also has three core and tube winding plants in China.
With a combined turnover of €170m, Corenso employs 850 people in Europe and China.
Once the deal concludes, the core and tube division is said to represent €260m or 16% of VPK’s group turnover with a total conversion capacity of 285 tons while the total production capacity of coreboard corresponds to 300 tons.
The acquired business will help VPK to expand into new markets such as Finland, Spain and China.
NPAC CEO David Walton said: “The combination of Corenso with VPK’s Corex business in Europe makes overwhelming strategic sense for both partiesand together, they have the potential to become a market-leading, customer focused organisation with an unrivalled presence and capability.”