AR Packaging in two minutes

This is AR Packaging

SALES (MEUR)

514

EMPLOYEES

2 250

EBITDA (MEUR)

62.5

FACTORIES

17

EBITDA-MARGIN

12.2%

COUNTRIES

9

Who we are

AR Packaging is one of Europe’s leading companies in the packaging sector with a sales of 514 MEUR and 2.200 employees in 17 factories in nine countries. The head office is located in Lund, Sweden. The Group creates added value for customers through a broad product offering and deep knowledge of packaging.

The business is divided into three divisions: Barrier Packaging, Branded Products and Food Packaging. All three divisions are characterised by high demands on all of the criteria for good packaging: protecting the content, promoting it and assisting the consumer in using the product.

AR Packaging has long-standing customer relationships, many dating back 30 years. Among the Group’s customers are British American Tobacco, Burger King, Danone, Ferrero, McDonald’s, Mölnlycke, Nestlé and Procter & Gamble.

The Group’s products and solutions are mainly used for folding carton and flexible packaging. The offer includes everything from proprietary machinery systems to packaging design and development

Market position

The total European market is estimated to be worth 22.5 billion EUR. In the folding carton market, AR Packaging is positioned as number three in Europe after the acquisition from MWV. In flexible packaging, the Group focuses on Northwestern Europe and has a market-­leading position in Scandinavia.

Our history

AR Packaging was formed in 2011 through the merger of A&R Carton, one of Europe’s leading carton board packaging groups, and Flextrus, a market leader in northern Europe in flexible packaging. Both companies share the same origin from 1929 stemming from Akerlund & Rausing, while A&R Carton was founded in 2000 and Flextrus in 2008 through a management buyout from Amcor Flexibles. In January 2015, AR Packaging signed the agreement to aquire the European tobacco, confectionery and general packaging operations of MeadWestvaco Corporation (MWV). The acquired business has net sales of about 150 MEUR and some 700 employees. With this acquisition, AR Packaging was elevated to the top three carton packaging companies in Europe.

Distribution of sales by segment

Our three core divisions

BRANDED PRODUCTS

Innovative packaging solutions for goods found in duty-free stores. Being a reliable packaging supplier with business acumen throughout the value chain and extensive geographical coverage are keys to the success of brand owners.

BARRIER PACKAGING

Unique, high-performance packaging solutions, both systems and materials, based on proprietary technologies, such as Cekacan® and Hermetet®. Wide range of advanced flexible barrier materials supplied with world-class product customisation, service and lead times.

FOOD PACKAGING

Key player in the development of food-on-the-go packaging, where consumer convenience is crucial. High food safety and sustainability standards as well as best-in-class key account management enables packaging needs to be translated into customer benefits.

The benefits of packaging

Packaging has three main purposes: to preserve and protect its contents, to seduce and attract at point of sale, and to serve the consumer when using the product. AR Packaging’s ambition is to deliver top performance, to minimise material usage, to optimise production and logistics efficiency, and to maximise the opportunity for promotion. AR Packaging delivers solutions that are convenient for the end user. Innovation and sustainability are always in focus. Available solutions range from carton packs, trays and fleixbles materials to high-tech solutions, such as Cekacan and Hermetet. AR Packaging creates fit-for-purpose solutions in a wide range of consumer market segments. In close partnership with customers and designers, the Group finds the right packaging solution for every requirement.

Mission

To optimise the benefits of packaging in our customers’ value chain.

Business strategy

AR Packaging’s business strategy is based on three elements:

  • To grow in segments and applications where the Group has competitive advantage and focus on profitability in other areas of its business.
  • To further improve the Group’s operational excellence and cost-efficiency through increased specialisation and investments in key technologies as well as reviewing and optimising its manufacturing footprint.
  • To adopt a global approach in core segments and aim to expand beyond its core European markets with selected packaging solutions.

Owners

The Group is owned by Ahlström Capital (65%) and Accent Equity (35%). Ahlström Capital is a family-owned investment company that mainly invests in industrial companies, real estate and forests. At the year-end 2015 Ahlström Capital Group’s balance sheet totaled 1.3 billion EUR and the annual net sales was 1.5 billion EUR. Accent Equity is one of the leading private equity firms in the Nordic mid-market segment.