The combined company will supply a broad range of packaging, including printed folded cartons, labels, inserts/leaflets, rigid boxes, and specialist packaging for the pharmaceutical/healthcare, consumer, personal care, confectionery, spirits, and multi-media end-markets. The vast majority of operations are divided between the U.S. and 10 countries in Europe. The combined company will also have a growing presence in emerging markets, including from an existing facility in China.
Marc Shore, MPS’s CEO, said that "joining these two companies will greatly benefit our customers and employees. The combined manufacturing footprint and technological capabilities are truly unique and will position us to match our customers’ needs with a broader range of products and operational flexibility. The ability to produce these goods and services in the U.S., Europe, and China will also give our customers consistency on a global basis. We are very excited to bring these two families of passionate, hardworking, and committed employees together as they will ensure our future success."
Mike Cheetham, Chesapeake’s CEO, added that "I’m excited about the prospects this transaction offers for our collective customers, employees, and suppliers. Both companies have benefited from a strong ongoing investment program and will continue to invest to deliver on the considerable growth opportunity this merger presents. Our extensive global network of dedicated operations provides our customers with a strategic partner for their long-term needs."
Marc Shore has been appointed CEO of the combined company. Cheetham and Dennis Kaltman, current MPS president, will be co-presidents and will serve with Marc on the executive committee responsible for overseeing the integration and growth of the combined company.
Upon completing the merger, ownership in the combined company will be split evenly between funds managed by global alternative asset manager The Carlyle Group and Chesapeake management, who collectively own 100% of Chesapeake, and investment funds advised by Madison Dearborn Partners, LLC and MPS management, who collectively own 100% of MPS. Completion of the merger is subject to customary closing conditions, including regulatory approval. It is anticipated that the merger will close during the first quarter of 2014.
Chesapeake is an international producer of consumer packaging. The company is a supplier of printed folding cartons, leaflets, and labels, as well as other specialist packaging to the pharmaceutical, confectionery, spirits, and food markets. Chesapeake has 38 locations in Europe, the U.S., and Asia, and employs approximately 5,000 people worldwide.
MPS is a global provider of value-added packaging solutions to a diverse, blue chip customer base across the healthcare, consumer, and multi-media end markets. MPS provides its customers with an extensive array of print-based specialty packaging, including premium folding cartons, labels, and inserts across a variety of substrates and finishes. MPS has 16 manufacturing locations in the U.S. and Europe and employs approximately 2,500 people.
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