Faerch aims to accelerate sustainable food packaging solutions with PACCOR acquisition

Faerch, a leader in solid food packaging, has announced that it will acquire PACCOR Packaging from private equity firm Lindsay Goldberg as part of its plans to expand its sustainable food packaging strategies.

Faerch says the acquisition of PACCOR is part of its plans to create circular food packaging solutions and will accelerate the transformation of materials required for the European dairy sector, which it adds is the largest segment in solid food packaging.

Founded in 2011 after the merger of several packaging companies and active in 18 countries, PACCOR is a provider of protective packaging for the dairy sector and previously provided “modern solutions” for yogurt, spread and ice cream packaging.

According to Andreas Schott, CEO of PACCOR: “Faerch’s unique integrated recycling capabilities provide entirely new opportunities to accelerate the transition toward circular packaging solutions, while combining both companies’ dedication to innovation and investments in research and development.”

Lars Gade Hansen, CEO of the Faerch Group says: “With PACCOR joining Faerch, the industry’s transition towards recycling will gain additional impetus to recycle food packaging into new food packaging of the same quality over and over again.

“With PACCOR’s leading position in the dairy sector, Faerch will be present in all major food packaging sectors, enabling much-needed standardization away from old, non-recyclable materials towards true circular packaging solutions.

“A comprehensive investment program will be launched to support material conversion and the expansion of our recycling platform.”

The acquisition reportedly involved 16 production sites in Europe, Asia and the United States, and more than 3,400 employees. However, the PACCOR UK business and its two production sites are not part of the deal and will remain with Lindsay Goldberg.

Hansen adds: “With PACCOR’s strong position in the dairy sector, our complementary geographical footprint and our shared ambition to make food packaging circular, PACCOR is the perfect choice for Faerch.”

When the deal is complete, Faerch Group will integrate 34 locations and employ nearly 6,000 people globally. The transaction remains subject to the usual closing conditions and regulatory approval.

Last year, Faerch implemented third-party audited data on recycled contents in PET food packaging products in an effort to provide consumers with maximum transparency. As part of its recycling commitments to the food industry, the company has also partnered with Tesco on a closed-loop recycling solution for PET trays for retailers.

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