Sweden's Billerud and Korsnas have announced they are joining forces to create a major new presence within the packaging industry.
Through an agreement announced on 20 June 2012, Billerud is set to acquire Korsnas from holding firm Kinnevik for the price of 2.7bn crowns ($388m). The resultant group will be known as BillerudKorsnas and, it's forecast, generate 20bn crowns worth of sales per annum.
The agreement represents Billerud's second major 2012 acquisition: previously, it purchased UPM-Kymmene's paper packaging division.
Billerud and Korsnas Merge
In a statement, Billerud and Korsnas referred to their merger as ‘a natural step to strengthen Korsnas and Billerud's successful businesses in virgin fiber packaging material with the aim to create a leading international player within the packaging industry.'
While still needing the final approval of competition authorities, this potentially huge merger is expected to have occurred by the end of 2012.
Both Billerud and Korsnas expect their amalgamation to raise their market profiles but, at the same time, save them 300 million crowns a year.
Swedish Packaging Firms Merger
"Billerud and Korsnas hold leading positions in renewable packaging materials niches that complement each other well", Korsnas' CEO and President, Christer Simrén, explained in a statement on this giant Swedish packaging firms merger. "Together, the companies will become a unique player with the ability to create innovative and leading packaging solutions for a growing and environmentally conscious global market."
"Together with Korsnäs, we are looking forward to creating a leading player within packaging materials with a solid platform for future growth", added Billerud's CEO and President, Per Lindberg.
"It is a transaction with both industrial and a financial logic where the combined company will be very well positioned. Together we will be able to offer our customers a better and broader range of products. Korsnas is the leader within its product areas which complements the product areas of Billerud and jointly the BillerudKorsnas offering of smarter packaging solutions will be strengthened."
Image copyright Korsnas