Acquisition of the European operations of MeadWestvaco Corporation

In January, 2015 AR Packaging announced the acquisition of the European tobacco, chocolate confectionery and general packaging operations of MWV (MeadWestvaco Corporation). The acquired operation includes three plants in Graz, Austria, Krakow, Poland, and Moscow, Russia, and certain additional carton business and related machinery in Svitavy, Czech Republic. AR Packaging operates the acquired business under the A&R Carton brand. With this acquisition, the Group added some 150 MEUR in sales.

After the acquisition, the tobacco business amounts to about 40% of the total AR Packaging operation. The acquired operations were successfully integrated with the AR organisation with no supply chain issues and with very good support from the customers. Through the acquisition, AR Packaging strengthened its market position and is the third biggest supplier of packaging in the world to the tobacco industry. There are substantial synergies with the acquisition: efficiency savings along with extended sales through better market coverage and the ability to offer additional technologies, such as Cekacan and Futeco.

Together with its customers, AR Packaging is serving as a strategic partner in conducting an extensive program in such matters as production, logistics, supply chain optimisation and cost efficiency with the aim of strengthening all parties’ market effectiveness. Also as a result of the acquisition, AR Packaging has the opportunity to grow from a regional packaging supplier to a global packaging partner for the tobacco industry.