ASIA – Aseptic packaging supplier SIG has completed the acquisition of Pactiv Evergreen‘s Asia Pacific fresh operations for an enterprise value of US$335 million.
The closure comes after SIG signed an agreement to acquire Evergreen Asia in January this year. The business will be fully consolidated from the beginning of August 2022.
Evergreen Asia supplies filling machines, cartons, closures, and after-sales service to its customers in the fresh segment mainly within the milk category.
For the twelve months ended 31 December 2021, Evergreen Asia generated revenue of approximately €135 million (US$137.53 million) and adjusted EBITDA of approximately €24 million (US$24.45 million).
Evergreen Asia has production facilities in mainland China, South Korea, and Taiwan and is starting to develop in other Southeast Asian markets.
Commenting on the closure of the deal, SIG Asia Pacific North President and General Manager Lidong Fan said: “Evergreen Asia is an exciting addition to our business. With chilled carton packaging, we can offer our customers an even more comprehensive range of products.
“Together, we will also continue to innovate and provide safe and sustainable packaging that consumers expect today and in the future.”
The acquisition will enable SIG to strengthen its position with existing customers and expand into a new customer base.
SIG also plans to use its local R&D presence and innovation capabilities, as well as its marketing expertise, to produce more innovative packaging formats in the fresh dairy market.
Pactiv Evergreen CEO Michael King said: “With most of our assets being in North America, we provide an extensive offering of North American-manufactured products to our customers.
“This transaction positions Pactiv Evergreen to further focus on our growth in North America, where we are established as a leading manufacturer of fresh food and beverage packaging, servicing many of the world’s most beloved brands.”
Expansion into fresh milk will be highly strategic for SIG as the Asia-Pacific Dairy Market is projected to grow at a CAGR of 3.12% during the forecast period 2020-2025, according to Mordor Intelligence.
The market research firm notes that China is the most significant market for dairy primarily driven by increased consumption of dairy products.
With Evergreen Asia having a significant presence in China as well as other high-growth markets in the region, its addition to SIG is certainly expected to have a positive impact on the company’s bottom line.
Appreciating this reality, Fan said, “As fresh milk is mainly consumed at home, this acquisition broadens our range with an increase in family-sized packs.”
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