Kohlberg Concludes the Acquisition of Bemis Healthcare Packaging - Europe

Posted by MarketsandMarkets on Sep 4, 2019, 6:01:55 PM
MarketsandMarkets

In August 2019, Kohlberg concluded the acquisition of Bemis Healthcare Packaging - Europe, which is a manufacturer of medical packaging.

Sudhakar Shukla – Assistant Manager, Chemical and Materials Research, at MarketsandMarkets™, shares his Point of View as mentioned below:

Kohlberg, a private equity firm and owner of Nelipak® Corporation, Inc. (“Nelipak”), a leading provider of custom-designed packaging for the medical device and pharmaceutical industries, completed the acquisition of Bemis Healthcare Packaging - Europe from Amcor’s Flexible Packaging business unit at a reported value of USD 394 million.

Bemis Healthcare Packaging operates through three facilities in Clara, Ireland; Derry, Northern Ireland, UK; and Elsham, UK, and generates annual sales of approximately USD 170 million. This acquisition will help Nelipak to expand its manufacturing and customer base in Europe.

Impact of Acquisition

Nelipak, a custom rigid healthcare packaging firm for Class II and Class III medical devices, and drug-delivery products, has facilities in the US, Europe, and Costa Rica. On the other hand, Bemis is a leading global company in flexible packaging and leads the industry with innovative designs, world-class quality, and excellent service. The company generates over 95% of revenue from the flexible packaging market and is a technological leader with several innovations such as ICE Films, ColdSpring, and PerfecSpring. The acquisition provides an opportunity to Nelipak to enhance its current product portfolio with the addition of fast-growing flexible packaging alternatives.

The figure below showcases the current market growth potential in the medical packaging market. The market is driven by the growth of the implantable device market and single-use disposable products market, and more importantly, rise in awareness regarding hospital-acquired infections. The high growth potential of the healthcare sector in the emerging markets, and advancements in medical device and equipment designing & packaging, present growth opportunities to the players in the medical packaging market.

Kohlberg completes acquisition of Bemis Healthcare Packaging Europe

e - Estimated, p - Projected
Source: Related Research Publications, Government Publications, Company Press Releases, Company Annual Reports, Company Websites, Company Publications, and MarketsandMarkets™ Analysis

Impact on Top Competitors:

We believe the merger impact will be huge, particularly for innovations in flexible packaging. Both businesses have a great repute, and the joint synergy will profit customers across the world. In the European context, their collective share will have a huge impact on the market dynamics and the market shares of other companies such as Wipak, Oliver, Leipa, Mondo, and Coveris, which have good presence in the European healthcare packaging market. The combined market share is expected to be the largest in market segments such as diagnostics/monitoring devices, orthopedics, injection systems, and medical devices. Bemis typically supplies a variety of products and materials and can readily expand and/or move across different product categories, offering customers with several formats/types of packaging and materials.

Conclusion:

The acquisition of Bemis Healthcare Packaging - Europe would contribute to the growth of Nelipak as the leading player in the healthcare flexible packaging with an improved global product offering and presence, especially in the European market. Customers in the healthcare packaging industry enjoy significant purchasing power due to the presence of the large supplier base; however, with this acquisition, Nelipak would be able to make effective use of Bemis’ expertise and cost-effective solutions in launching products and limiting its sourcing partner.

For more information, please write to us at info@marketsandmarkets.com

Topics: Medical Packaging Market, healthcare flexible packaging, packaging industry, european market, European healthcare packaging market, flexible packaging

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