Chicago-based Packaging Systems has been bought by the UK packaging group David S Smith (Brownsover Road, Rugby, GB - Warwickshire CV21 1HL) for GBP 18m. The deal requires US regulatory approval, but is expected to be finalised during August. Packaging Systems, which trades as Rapak, is a major bag-in-box packaging and machinery systems company with operations in Romeoville, near Chicago, and Union City, California. Its products include flat-pack wine boxes and fast food packaging. Commenting on the deal, Graham Barker, divisional director of David S Smith Plastics & Logistics Division, said: “The acquisition is a further step in the development of a global liquid packaging and dispensing business.”

This is the second US acquisition made in recent months in this market sector by David S Smith, which has manufacturing operations specialising in liquid packaging and dispensing with a cumulative turnover of GBP 55m. In May it bought Formative Engineering, which produces precision injection moulded parts for applications in liquid connectors. Both deals are seen as strategic moves to strengthen the company´s ability to respond to the needs of its international customers in markets such as post-mix, fast foods, dairy products, wine, water and edible oils.

Rapak executive vice president, sales and marketing, Paul Petriekis welcomed the takeover, seeing it as an extremely positive development for the company. He is part of a management team that will report to Stuart McPherson, managing director of David S Smith Liquid Packaging. McPherson says this latest acquisition will, “bring increased depth to our group, both geographically and technically.”

David S Smith can supply every aspect of a liquid packaging operation, from aseptic and non-aseptic filler installations and systems, in which it is a market leader, to dispense fitments and a range of bag-in-box systems. There are now manufacturing plants in the UK, Germany and the US, with the Rapak division able to design and manufacture bags and closures, as well as fillers and bag loading systems, for bag-in-box applications. A total of 90 injection moulding machines in the three countries also produces a comprehensive selection of proprietary fitments and closures for liquid packaging. – Parent organisation, David S Smith (Holdings) PLC has a turnover in excess of GBP 1,200m.