Premier Paper has stepped further along the display and packaging supply chain with the purchase of WBC, a company that specialises in providing packaging to artisan food and drinks producers.
It is the second purchase in recent months that follows the same diversification strategy into more value add sectors following acquisition of Zulu Packaging, a lamination films supplier in July.
Further deals are likely.
Both sides see benefits and opportunities for expansion from the deal. For Premier Paper, CEO Michael Beever says: “We are delighted to be supporting WBC in the next phase of their development. Although the businesses sell to very different market sectors, many of the same values are common to both organisations. Having WBC as part of our group will open up many opportunities for all parts of the company to develop product and service offerings through the sharing of knowledge and expertise.”
The materials used by WBC, corrugated in the main, are closely aligned with Premier’s Display Graphics arm, itself one of the youngest parts of the merchanting business. WBC uses corrugated to produce and supply both standard and bespoke packaging. This can be supplied plain or overprinted with logos or other messages. A network of third parties has been engaged for this purpose with flexo, screen or digital printing.
WBC was started in 1985 and operates from offices in south east London and a warehouse in Crawley with 55 employees and sales of £18 million. It will also source and supply jute bags (produced and printed in India), wicket baskets and wooden presentation boxes.
WBC chairman is Andrew Wilson who, with managing director Tim Wilkinson, controls the majority of the shares. Both are likely to bow out, though not immediately. All staff and management team are being retained to ensure continuity. Wilson says: “Strategically, being part of Premier opens up many opportunities for WBC customers and employees. It was vital for me that the legacy of a business driven by its values continues with any new owners. I strongly believe that both companies share similar values and the WBC legacy will flourish under premier’s stewardship.”
Wilkinson adds that being part of a much larger organisation will help WBC grow. “The additional resources, logistics support and expertise provided by Premier will allow us to expand and improve our service and product choice to customers.”
There is an international dimension too as Premier is part of the Japanese giant Ovol with a global turnover of $5 billion across 21 countries.
After the summer acquisition, Zulu changed its name to Premier Lamination Films. It is not clear whether WBC will be renamed.
