Woodberry Packaging has acquired sister companies Medica Packaging and Curtis Packaging from private equity business Harwood for an unnamed sum.
The acquisitions are the next step in building a European wide pharmaceutical packaging group. Woodberry Packaging chief executive Peter Santo says: “This is part of a clear, long-term strategy of brining high quality businesses together and integrating them well to create a stronger whole.”
It is also he explains about growth. There will be synergy savings but this is about finding growth by creating a larger entity rather than through reducing costs. Medica will sit alongside Reelvision in the UK and Dublin printer Colorman to provide critical mass in what are two of the key markets for pharmaceutical industry in Europe. “We want to drive organic growth,” he says. “It is not about stripping out costs.”
There will be be greater efficiency in purchasing and reorganisation of sales teams to represent the wider group offer. The market for pharmaceutical packaging across Europe is put at $2.5 billion with growth of 5% CAGR for the next few years. The UK is one of the leading markets in Europe with Ireland valued at half the UK’s size, disproportionate to its demographic and geographic size.
Other key markets where Woodberry is eyeing expansion include Germany and Italy. That is for the future. The immediate challenge is integrating the two acquisitions into the wider group with clear potential in bringing Medica and Reelvision together. “This makes us the largest pharmaceutical carton manufacturer in the British Isles with three PS9000 certified sites,” he says. Both are located in the north west of England, while Curtis which produces cartons for the cosmetics and personal care sector, operates from a site near Redhill.
The deal takes Woodberry to revenue of €120 million with 650 staff, almost doubling the size of the business. Woodberry also includes the Certus security and membership card business.
“Reelvision and Medica offer flexo and litho printing,” he says. “They are part of a European market valued at $250 million with growth of 5% CAGR.”
Woodberry is also able to invest where needed, say in digital print for patient information leaflets or for very short run cartons. The group is also prepared to acquire to serve German and Italian markets and to be able to offer label printing to complete a full service offer for customers. “I believe in being able to offer a full portfolio of cartons, leaflets and labels to become a credible one stop shop supplier.”
Santo joined Woodberry Packaging as CEO In February with a background in manufacturing and driving operational excellence. This is something that is on the agenda for the businesses in the group aiming for continuous month by month improvement to achieve world class manufacturing status.
“The first thing we need to do is to integrate the businesses,” he says.
Medica is already a leader for pharmaceutical carton printing. It is well invested with recent purchases including a six-colour plus coater Komori Lithrone GX640. At the same time as that investment the company acquired Curtis Packaging, itself with a recent CX102 and Speedmaster XL75.
Existing management teams will remain in place, Gerard Harford leading Medica and James Williams leading Curtis. The Woodberry Packaging team includes non executive director Mark Kerridge who was in charge of Medica when it was a subsidiary of Benson Box.
