STOCKHOLM - Ahlstrom-Munksjö, the Swedish manufacturer of fibre-based materials, has acquired converting operations in China and the U.S. from Shunde Lucas and Altior Industries.
Through the transaction, Ahlstrom-Munksjö will have local filter converting capacity in China and a foothold for expanding sales of other products within the Advanced Liquid Technologies business. Local presence in Asia will shorten delivery lead times and enable Ahlstrom-Munksjö to serve its customers even better, the company said.
Net sales of the acquired operations are approximately US$7 million and comparable EBITDA US$2 million annually, meeting the Group’s comparable EBITDA margin target of above 14%. Their product offering of hot cooking oil filters is used in quick service restaurants and food service operations, mainly in China and the U.S. The combined operations are expected to generate substantial synergy benefits while the debt free purchase price was approximately $11 million.
“I’m pleased that the new foothold in China will facilitate growth for a wide range of our product offering within our highly attractive Advanced Liquid Technologies business. This deal will also double the company’s sales in fry oil filters and make us a global leader in this niche business - a foundation for creating long term value for our stakeholders. In the future our ambition is to expand the Advanced Liquid Technologies business even more through organic growth and acquisitions,” said President and CEO Hans Sohlström.
Packaging
Ahlstrom-Munksjö has also recently joined a new industry alliance known as 4evergreen, the aim of which is to increase the contribution of fibre-based packaging in a circular and sustainable economy.
The purpose of the 4evergreen alliance, which was formed by Confederation of European Paper Industries (CEPI), is to increase awareness about the benefits of fibre-based packaging materials, advocate for EU legislation supporting product design for recyclability and call for the development of optimized collection systems and appropriate recycling infrastructures.
The rise of environmental awareness and consumer concerns, as well as the increase of packaging focused regulation, such as the Single Use Plastics Directive, are important factors shaping market trends. They also help companies to accelerate the development of alternative packaging material including fiber based-solutions.
In 2019, Ahlstrom-Munksjö has launched several new value added, sustainable products. Among these the CelluStraw offering, specially designed to address emerging initiatives to phase out single-use plastic straws. It has also developed fibre-based packaging tape solutions to replace plastic tapes and increase the contribution in the circular economy.
“Fiber-based solutions are at the core of what we do,” explains Robyn Buss, Executive Vice President of the North America Specialty Solutions Business Area for Ahlstrom-Munksjö and continues, “4evergreen has created a cross-industry alliance that creates a platform for pre-competitive collaboration and innovation and will drive the support and development for new sustainable packaging designs.”
“Sustainable packaging solutions must include fiber-based packaging,” added Brian Oost, Vice President of Product Management and Marketing of the Foodpack Business Unit. “Through collaborative innovation with the entire supply chain, we have an opportunity to continue to contribute to a more sustainable everyday life.”