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Industry News


Zeus acquires Austrian food packaging solutions company as part of €40 million acquisition strategy


I


rish-owned Zeus Packaging, the leading independent packaging manufacturer and distributor, has today announced the acquisition of Austrian-based food packaging


solutions business, Petruzalek, which was part of Sirap-Gema Group. Today’s acquisition further expands and strengthens Zeus’s geographic presence across 12 countries in Western, Central and Eastern Europe. In 2020, Petruzalek achieved


revenues of approximately €58 million, net assets of €16 million and EBITDA of €2.5 million. The acquisition, for an undisclosed sum from Italian investment holding company, Italmobiliare, completes a three-year €40 million acquisition


strategy for Zeus. It is the seventh business to be integrated into the Zeus family during the past 18 months. Established by Brian O’Sullivan in 1998, this acquisition brings the number employed by Zeus from 450 people across 14 countries to 670 people across 26 countries. The group’s turnover has grown substantially over the past three years, reaching €208 million in, 2020, and expected to reach €280 million for 2021. Commenting on this latest


acquisition, Zeus CEO Keith Ockenden said: ‘This latest acquisition is the largest in our strategic expansion, and along with recent investments in our leadership operational infrastructure, is an integral part of Zeus’s long-


term growth strategy. The purchase of Petruzalek significantly extends our reach into new markets, brings complementary diversification to our product range and further enhances our client network. “Petruzalek’s product range utilises


low environmental impact renewable, recyclable and compostable materials enabling us to further deepen our focus on sustainability in, 2021. As always, we are committed to delivering innovative sustainable packaging solutions for our valued clients in Ireland, the UK and across Europe. This move enables a true European supply solution for customers looking to consolidate supply chains and maximise cost efficiencies.”


Zeus Founder Brian O’Sullivan said: “In 2020, despite the pandemic, Zeus reached a milestone with revenues exceeding €200 million. With today’s announcement, Zeus remains on track to become the largest independent packaging distribution business in Europe. The acquisition of Petruzalek not only further builds on our scale, but strengthens our operating platform across Europe.” Assisting Zeus in the purchase of


Petruzalek with funding, tax and legal advice, and financial due diligence were Sean O’Keefe, Ulster Bank; Eversheds Sutherland; Deloitte Ireland; bpv Hügel; McMahon O’Brien Tynan; Gattai, Minoli, Agostinelli & Partners, Milan; & EY, Vienna and Milan.


Growing demand for packaging and hygiene papers while COVID 19 impacts overall paper and board consumption


Despite the slowing down of the European economy and the sanitary restrictions, most of the mills ran without disruptions in 2020; even if some operated at reduced speed because of lower levels of demand. According to preliminary figures, the demand for packaging paper and board continued to grow in, 2020, especially materials used for transport packaging and corrugated boxes, as they benefited from the e-commerce boom related to the sanitary crisis. The production of packaging


grades is estimated to have increased by 2.1% compared to 2019. They are essential to transport and deliver supplies, such as medicines or food. The output of carton board plus other packaging board – mainly used for retail packaging - and the


production of wrapping grades – used for paper bag production – remained unchanged. Domestic demand for hygiene


papers has been relatively positive in, 2020, despite the COVID-19 restrictions affecting the ‘away-from- home’ markets. Tissue and hygiene products are of vital importance to citizens and offer the safest option, particularly to implement the recommendations issued by national governments and the World Health Organisation (WHO). Sanitary and household paper manufacturers’ output increased by 1.9% compared to, 2019. “The European pulp and paper


industry’s priority in 2020, has been to ensure that EU citizens can access the products they need for hygiene, health and food purposes. We have


been relentlessly working with other industries along the value chain to guarantee security of supply to citizens. Our industry data now shows that crisis and the periodical lockdowns have accelerated consumption patterns change and will have a long-lasting impact on markets,” commented Jori Ringman, Cepi Director General. The overall paper and board


consumption was impacted by the economic recession and decreased by 6.6%. The European GDP declined by7.4% in 2020, after +1.6% in 2019. Cepi member countries’ paper and board production decreased by 5.0% in 2020, compared to the previous year, mainly due to COVID-19 pandemic impacting global demand. The pandemic has also


accelerated the structural decline


of graphic grades. The overall production of graphic grades fell by more than 18.0%. Newsprint and printing & writing papers decreased by 20.5% and 18.4%, respectively. Demand from publishers, offices and commercial printing has declined dramatically. Permanent mill closures or machines conversions have been announced, to adjust to the situation. The utilisation of paper for


recycling by paper companies in the Cepi area decreased by 2.1% compared to the 2019, level. The pandemic impacted the availability and quality of paper for recycling throughout 2020. 96% of European paper for recycling utilisation is supplied domestically. Exports went down by 8.4% according to preliminary statistics.


Green Packaging International ● Spring 2021 7


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