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Sunoco to pick up Peninsula Packaging
Posted on Thursday, 16 February 2017 14:58
Sunoco is picking up thermoformed plastic packaging company Peninsula Packaging for USD 230.00 million from Odyssey Investment Partners.
The deal is expected to help expand the buyer’s capabilities in the fresh produce market, where the target is a leading manufacturer of boxes for fruit and vegetables found in fast-growing US supermarkets.
Rob Tiede, executive vice president of Sunoco, said: “Combining Peninsula’s product lines with Sonoco’s packaging capabilities positions us extremely well to capture new growth in the rapidly expanding fresh and natural category.”
He added this will “accelerate our ability to offer our customers the most diverse consumer packaging formats and solutions in the industry”.
Tiede also observed that during the last few years’ supermarkets have spent USD 15.00 billion growing their freshly prepared options in order to increase sales of items along the perimeter of the store as consumers become more health conscious and avoid heavy calories and fizzy drinks.
Sunoco will be able to deliver manufacturing and supply chain synergies gained from the connection between thermoformed trays and film lidding stock.
Peninsula Packaging was founded in 2001 and is focused on packing for a range of fresh fruits, pre-cut fruits and produce and prepared salad mixes.
For 2016, the Californian group had pro forma sales of about USD 190.00 million and operated five manufacturing facilities comprising four in the US and one in Mexico.
Sunoco, billed as a global provider of consumer packing, industrial products and protective supply chain services, sold its rigid plastics blow moulding operations in the US and Canada for USD 280.00 million to Amcor in November 2016.
Just days after it picked up Plastic Packaging for an undisclosed amount.
Jack Sanders, chief executive of Sunoco, said the company’s goal is to expand its consumer packing portfolio and the addition of Peninsula Packaging will nearly double its thermoforming capabilities.
Tiede noted a recent research project shows that supermarket sales of fresh foods could achieve a compound annual growth rate of between 6.0 and 7.0 per cent over the next four years.
© Zephus Ltd