Excelsior, which has plants in Wales and Lancashire in the UK, produces flexible packaging for food applications such as pouches, roll stock, lidding films and has packaging technology for microwave steam cooking supplying regional and US customers.
It generated revenues of $50m in the year ended December 31, 2016.
David Hathorn, CEO, Mondi Group, said the acquisition supports the development of its consumer packaging business in high growth product applications.
“Its microwave steam cooking packaging technology complements and enhances our global food packaging offering,” he added.
Peter Oswald, CEO, Mondi Europe & International, believes global demand for food flexible packaging will continue to grow, driven by increasing demand for extended shelf-life of fresh and prepared food, end-consumer convenience (such as pre-prepared and on-the-go meals), brand enhancement and sustainability.
According to a report by Research and Markets; ‘Flexible Packaging Market by Material, Printing Technology, Type and by Application - Global Forecast to 2021’, flexible packaging is projected to grow to $125.66bn by 2021.
It claims growing manufacturing industries has led to the increase in the demand of flexible packaging, especially in Asia-Pacific and Latin America.
Clondalkin Group Holdings
Constantia Flexibles Group
Sealed Air Corporation
Sonoco Products Company
Mergers & acquisitions accounted for 59% of the total strategic growth developments adopted by key players in the flexible packaging market from 2011 to 2015. Companies adopted these strategies to increase their geographical reach and strengthen their product portfolios and were largely adopted by the leading flexible packaging products manufacturing companies.
Amcor Limited (Australia), Bemis Company (US), Constantia Flexibles Group (Austria), Huhtamaki Group (Finland), and Sonoco Products Company (US) are some of the leading key players that adopted these strategies.
The global flexible packaging market is segmented, region-wise, into North America, Europe, Asia-Pacific, and RoW (rest of the world). The Asia-Pacific region is projected to grow at the highest rate from 2016 to 2021. The rising economy and the rapid growth in the food & beverage and healthcare sectors of the Asia-Pacific region have significantly impacted the growth of the flexible packaging market.
Plastic films is projected to grow at the highest rate during the forecast period, in terms of volume and value because of their high quality, low cost, and excellent barrier properties.
The report states retort pouches will also grow at the highest rate during the forecast period owing to the high barrier properties against oxygen and moisture. In this type of packaging, the food is thermally processed to increase the shelf life. The stand-up pouch is estimated to account for the largest market share in 2021.
Benefits from Mondi investment
Speaking about the acquisition, Keith Chapman, executive chairman, Excelsior Technologies, said Mondi is a good fit with Excelsior’s existing business strengths whether it is from a product, sales organization or manufacturing operations perspective.
“We have a very strong and established customer base which is going to enjoy the added benefits that Mondi’s investment and expertise will bring,” he said.
Excelsior Technologies launched a series of food on-the-go packaging at the Lunch! show at London’s Business Design Centre last year.
Julie Eller, sales director, Excelsior Technologies, said at the time its FreshTECH and CookTECH flexible packaging have enabled the creation of Snack&Go, Grab&Go and Lunch&Go lightweight convenience packs.
It also exhibited its SoupFast, Store&Steam, Zip’nSteam and Bake Lux at the event.