Weidenhammer Packaging Group’s (WPG) planned acquisition of A&R Carton Lund and Flextrus has been called-off.
WPG, a European supplier of composite cans, composite drums and plastic containers and AR Packaging Group (AR), headquartered in Lund, Sweden, agreed in a joint Letter of Intent in November 2013 it would buy A&R Carton Lund and Flextrus.
However, AR Packaging Group recently informed WPG due to the failed sale of its tobacco packaging business, it has decided to end the ongoing negotiations on divestment regarding the sale of its Specialties Packaging and Food Packaging operations.
This decision has a direct effect on A&R Carton Lund and Flextrus, which Weidenhammer in a mutual agreement with AR Packaging had planned to purchase.
“We regret the AR Packaging Group has ended negotiations with us, and that as a consequence the acquisition cannot be concluded as hoped,” said Ralf Weidenhammer, MD, WPG, in a statement.
“However, this decision will have no effect on the development of our overall business as a corporate group.
“In the past year, we successfully expanded our business with composite cans and IML plastic containers.
“Our barrier packages are in high demand, especially for food products, as a result of which we are growing in all markets. We plan to continue that growth in 2014 and the years to come.”
Founded in Hockenheim, Germany in 1955, WPG has12 production sites, 1,100 employees and annual sales of €250m.
Customers include Nestlé, Unilever, Kelloggʼs, Mondelez, Rügenwalder Mühle, Imperial Tobacco and BAT.