Klöckner Pentaplast to Acquire Linpac Group

Klöckner Pentaplast Group (“KP”) has signed an agreement to acquire Linpac Group

Germany: Klöckner Pentaplast Group (“KP”), a Heiligenroth based rigid plastics and packaging manufacturing company, has signed an agreement to acquire United Kingdom based, LINPAC Senior Holdings Limited and its indirect and direct subsidiaries. Linpac Group is involved in manufacturing food packaging films and food services across Europe. This acquisition would aid KP Group to expand its presence and technological abilities in the flexible, rigid & food packaging film market. Additionally, it would maintain KP Group’s dominance in the flexible and rigid film market, generating an expected cumulative annual sale of more than USD2 billion in future. Moreover, the deal would significantly aid the company to cater the demand for films in food & beverages, pharmaceutical, and other downstream industries.

TechSci Research depicts that this acquisition will strengthen the position of KP Group in the global flexible and rigid film market. Additionally, this merger would leverage the consumption of masterbatch in packaging industry across Europe, as it is used as key ingredient in plastic and film manufacturing processes.

According to the recently published report by TechSci Research, “Europe Masterbatch Market By Type, By End User, By Country, Competition Forecast and Opportunities, 2011 - 2021”, the masterbatch market in Europe is projected to cross US$ 6.3 billion by 2021. Increasing per capita plastic consumption, growing packaging industry and rising demand from plastic and polymer manufacturers are the major factors anticipated to boost demand for masterbatch in Europe. In 2015, white masterbatch accounted for the largest share in the region’s masterbatch market owing to their ability to provide opacity to the base polymer. This trend is expected to continue over the next five years as well. Packaging industry is expected to remain the largest demand generator for masterbatch market in Europe, followed by construction and automotive sectors.