Sale of LINPAC's US paper business
LINPAC GROUP LTD
ANNOUNCEMENT
SALE OF LINPAC'S US PAPER BUSINESS
LINPAC announces the conditional sale of its remaining North American paper interests – LinPac Inc - to Dennis Mehiel. The transaction is subject to customary regulatory approvals and is expected to close by the end of the third quarter.
LinPac Inc is a vertically integrated corrugated packaging producer, based in Atlanta Georgia, with annual turnover of $200m and 600 employees. The business primarily serves the South East US packaging market and is positioned as a high quality, low cost producer of recycled liner-board, corrugating medium, corrugated sheets, boxes and point-of-sale displays.
Mr. Mehiel was the Co-Founder and Principal Shareholder of Box USA, North America’s Largest Independent Producer of Corrugated Packaging when purchased by International Paper Company in 2004. He is the majority shareholder of Mannkraft Corporation, a leading corrugated and display ready packaging manufacturer in the North Eastern US with annual turnover of $50m. LINPAC and Mannkraft will operate as affiliates.
LINPAC's Mike Arrowsmith stated “this divestiture represents a further positive step in focussing the Group’s activities on its core plastic packaging businesses. Dennis Mehiel, with his significant experience in building, buying and operating businesses in the container board and food service products sectors, offers LINPAC Inc and its loyal workforce an excellent opportunity for further growth”.
“LINPAC has a long term and well deserved reputation for outstanding customer service and the highest qualitative standards” said Dennis Dorian Mehiel, Mannkraft’s President and Chief Operating Officer. We view the combination of these two companies as an ideal platform for further growth.
10th August 2006