Singaporean sovereign wealth fund GIC to buy 47% stake in US rigid packaging company Altium

US – Singapore’s sovereign wealth fund, GIC, has agreed to buy a 47% stake in Altium Packaging  from Loews Corporation.

According to a report by FoodBev, the GIC deal values the Atlanta-based a rigid plastic packaging and recycled resin company at US$2 billion.

Altium supplies its packaging solutions to a diverse customer base spanning the dairy, food and beverage segments, as well as the pharmaceutical and chemical industries.

The company also operates a post-consumer resin recycling business, Envision Plastics, which is said to be a top supplier of recycled high-density polyethylene in North America.

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The entry of GIC into the rigid plastic packaging is timely as the market is expected to continue growing at a CAGR of 5.6% to reach a market value of US$340.4 billion by 2026, according to Research and Markets.

The market research firm notes that during the forecast period, they expect the rigid plastic packaging market to be driven by the growth in adoption of rigid plastic packaging in the food & beverages industry, and rise in demand from the healthcare industry.

The market growth is however threatened by an accelerated shift towards more sustainable alternatives such as paper and bioplastics.

For instance, Global snacks and confectionery group Mondelēz International, behind Cadbury Dairy Milk, announced that has removed over 6.4 million plastic windows from its Easter eggs, taking 5.4 tonnes of plastic out of the environment.

Following on the footstep of Mondelez, Swiss food processing Giant Nestle also announced that it will introduce bio-based lids and scoops made from sugar cane and its by-product for a range of its nutrition products for infants and children.

 Speaking on the development, Sean Fallmann, president and CEO of Altium Packaging said:  “We are pleased to welcome GIC as a shareholder of Altium Packaging. GIC is a well-established, long-term investor with a track record of success.”

“Having Loews and GIC – two world-class institutions – as our partners will be invaluable as we continue to pursue our growth strategy and seek accretive acquisitions that add further scale and end-market diversification,” added Fallmann

With around 4,000 employees, Altium operates 64 packaging manufacturing facilities in the US and Canada, as well as two recycled resin manufacturing facilities.

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Last year, the company acquired the assets of a privately-held material handling and packaging manufacturer SFB Plastics, Inc., in Wichita.

 Reuters reported that the Transaction with GIC is expected to close in the next 30 days.

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