O’Connors advises Intelipac on sale to Thai packaging giantOctober 10, 2018
Thai packaging group TPBI has spent £13m on acquiring a North West company.
Intelipac, based in Walston Summit, near Preston, operates a manufacturing plant in Newcastle-under-Lyme making paper and cardboard packaging products.
TPBI, which is stock exchange listed and headquartered near Bangkok, said the acquisition is in response to the growing demand in the global market for eco-friendly packaging products.
It has signed a deal to buy Intelipac Paper Manufacturing, which provides paper packaging products for the food and bakery industries and shopping malls, Intelipac Limited, which trades plastic packaging products, such as reusable bags, bags for vegetables, fruits and other foods, in the UK, Europe and Australia, and 25% of ITPA (Australia), which will enhance its products variety as its portfolio will comprise both paper and reusable plastic.
This will improve its capacity to attract new customers and retain existing customers.
Mr Somsak Borrisuttanakul, TPBI chief executive, said the acquisitions will increase TPBI’s competitiveness in the world market through an entry in the business of producing and supplying eco-friendly paper packaging products, with a manufacturing base in the UK and channels for distribution of reusable plastic packaging in Australia, the UK and other European countries.
“Moreover, the company is seeking to employ paper packaging for research and development of new products for distribution in Thailand,” he said.
He added: “We relentlessly explore new opportunities to strengthen the existing business and enter new businesses through acquisitions as part of our strategic moves to achieve production and supply of eco-friendly packaging products.
“The acquisitions have transformed us into a world-class producer and supplier of packaging products from a variety of materials, and they have equipped us with the channels for distribution of reusable plastic bags in new markets.
“We are also looking to increase the variety further to reflect demand in European and Australian markets.”
Mr Kamol Borrisuttanakul, TPBI’s chief financial officer, noted that, through the acquisitions TPBI has obtained a paper packaging production plant with a production capacity of two million units per day in the UK, as well as management teams with extensive experience and understanding of the European and Australian market environment and demand.
TPBI said it is planning to double its production of paper packaging products to cater to global demand.
O’Connors acted for the seller, making this O’Connors fourth cross border deal this year. A spokesperson for Intelipac said: “We have worked with O’Connors for more than ten years now and their advice has been fundamental to the structure and growth of our group. We have enjoyed partnering with them and have found their approach both professional and refreshing.”