ProAmpac has acquired the bag converting operations of International Paper, expanding its paper-based packaging capabilities for grocery, convenience store and quick-service restaurant markets.
The acquisition adds manufacturing sites in California, Oregon and Texas, U.S., to ProAmpac's operations. The facilities specialize in kraft paper bag manufacturing, producing handled shopping bags, self-opening sacks and other formats.
"Global demand for reliable, recyclable paper packaging continues to grow rapidly amid evolving consumer expectations and market trends redefining recyclability," stated Greg Tucker, ProAmpac founder, vice chairman and chief executive officer. "ProAmpac's acquisition of IP's bag operation supports our Fiberization of Packaging initiatives, helping us better serve customers by extending our expertise in material science to the US west coast with additional capabilities and redundancies," continued Tucker.
"IP's bag business is strong, being built on sustainability and reliability, with a winning team. It's well-positioned for future growth and innovation in the kraft paper bag market," said Allison Magness, IP's group vice president, specialty business. "Under ProAmpac's leadership, I am confident the business is set up for long-term success."
The acquisition increases ProAmpac's production capacity and manufacturing redundancy across multiple U.S. locations. Terms of the transaction were not disclosed.
