Mondi buys packaging firm Excelsior

Mondi Group is expanding its consumer packaging portfolio by acquiring UK-based company Excelsior for £33 million ($41.2m).

Excelsior is a vertically-integrated producer of flexible packaging solutions, mainly for food applications. Its product portfolio includes pouches, roll stock and lidding films for confectionery, biscuits, fresh produce, fruit and vegetables, chilled and ambient foods, as well as frozen food.

With two plants, located in Deeside in Northern Wales, UK and Nelson in Lancashire, UK, the company serves both domestic and US customers. For the year ending 31 December 2016, Excelsior’s revenues reached £39m.

Commenting on the acquisition, David Hathorn, chief executive of Mondi Group, said, “The acquisition of Excelsior supports the development of our consumer packaging business in high growth product applications. Its leading microwave steam cooking packaging technology complements and enhances our global food packaging offering.”

Global demand for food flexible packaging solutions is expected to continue growing. This is being driven by increasing demand for extended shelf-life of fresh and prepared food, the focus on end-consumer convenience (such as pre-prepared and on-the-go meal solutions), brand enhancement and sustainability considerations.

Excelsior Technologies executive chairman Keith Chapman added, “We have a very strong and established customer base who are going to enjoy the added benefits that Mondi’s investment and expertise will bring.”