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FLEXO Magazine : February 2014
5 Year Growth Patterns for Print & Packaging CHICAGO, IL---The Print Industries Market Information and Research Organization (PRIMIR), joining forces with the Econo- mist Intelligence Unit, is estimating the 2017 global print market at $668.6 billion, up from 2012's $578.6 billion. Cumulative growth for the five year period comes to 15.6 percent. China is expected to pass the U.S. and become the largest print market. The U.S. will maintain a strong hold on No. 2 position. PRIMIR and its partner LPS issued a similar forecast state- ment specific to packaging. It listed a dollar value for the global packaging market of $234.4 billion in 2012, then projected five year growth patterns would bring about an increase of some $54 billion, a cumulative increase of 23 percent. In 2017, the global packaging market is set to reach $288.5 billion. Hood Packaging Buys Bemis Paper Packaging Division NEENAH, WI---Bemis Co. announced it has reached an agreement to sell its Paper Packaging Division to Hood Packaging, headquartered in Madison, MS, and Burlington, Ontario. The sale encompasses facilities and offices in Cros- sett, AR; Minneapolis, MN; Omaha, NE and Vancouver, WA. Collectively, sales were estimated at more than $160 million in 2013. Closing of the deal is expected before March 31, 2014. "The sale of this division will allow Bemis to focus resources on strategic opportunities in high barrier flexible packaging, medical and pharmaceutical packaging, and developing geographic markets," explained Henry Theisen, Bemis' chair- man and CEO. New Momentum for Packaging M&A CHICAGO, IL---Companies like RockTenn, Amcor, Bemis, Graphic Packaging, Multi Color, Berry Plastics and Kapstone are using mergers and acquisitions to drive their business models, according to Mesirow Financial, a capital market analyst and investment banking firm. These market watchers expect the trend to continue. "It is difficult to imagine a better environment for packaging M&A transactions," Mesirow said. "Activity in 2013 surpassed 2012, but did not reach blockbuster levels of 2010 and 2011." High stock prices and public company valuation multiples, record levels of private equity to invest, encouraging econom- ic growth forecasts and low interest rates all play a part. Mesirow projections hold that "private equity groups have record levels of cash available for investment," and, "Pack- aging remains very attractive, given the industry 's stability, growth prospects and profitability." Among firms it credited with being built through this approach are: Paperworks, Coveris, Berry Plastics, WS Packaging, Ampac, Fort Dearbon and Clondalkin. Similarly, Mesirow said international growth aspirations have prompted firms like International Paper, MeadWestvaco, CCL, Graphic Packaging, Amcor, Bemis and Smurfit Kappa to accelerate the pace of merger and acquisition activities. Digital Flexo Revolution Promised FLORENCE, Italy---Nuova Gidue's headquarters was the stage for a Dec. 11-12, 2013 meeting between seven leading companies in the label and narrow web flexographic printing field. There, experts from Nuova Gidue, UPM Raflatac, Adare, Esko, Flint Group, DuPont and Apex Group of Companies gathered for a kick off meeting to run a project---"REVO, Dig- ital Flexo Revolution"---that aims to create history. Together, they plan to develop a new way for flexo to compete. Target objectives are: • 90 percent or better real production uptime for the press • 10 meters/ 328 ft., or less, substrate waste per job change • 10 minutes, or less, press downtime for setup and changeover • Decreased anilox inventory • Low ink consumption on heavy solids • Low energy consumption for curing/drying • 80 lines/cm screen count as standard • Multiple jobs on the same web • Unlimited spot colors per job The REVO project team intends to provide an answer on behalf of the flexo industry to the increasing importance of digital print, especially in label and narrow web packaging. Its promise is to develop a ready-to-go complete concept that will expand the possibilities for flexo converters. High quality print, increased efficiency, higher productivity and improved sustainability are expected results. All partners bring special knowledge and dedicated prod- ucts in their own specific fields of the flexo industry. Collective- ly, the team will optimize the flexo process by "digitalizing" the whole manufacturing process, and reach new revolutionary standards in printing and converting. A "plug & play " concept for printers is set for unveiling in May 2014. Unisource, xpedx to Merge NORCROSS, GA---Unisource Worldwide, Inc. and xpedx will merge under the terms of a definitive agreement that will create of a new publicly traded company. The agreement to merge the businesses was signed by International Paper, par- ent company of xpedx, and UWW Holdings, Inc., the holding company of Unisource, owned indirectly by an affiliate of Bain Capital and Georgia-Pacific, as well as affiliates. Upon the expected completion of the merger in mid-2014, the new company will have projected annual revenue in the range of $9 billion to $10 billion and about 9,500 team mem- bers across more than 170 distribution centers in North Amer- ica. The new company is expected to generate approximately $200 million in synergies. Executive offices will be located in the greater Atlanta area. In addition, the new company will retain the two existing operational headquarters of the legacy companies in Norcross, GA, and Loveland, Ohio. Mary Laschinger, currently president, xpedx, and senior vice president, International Paper, will be the chief executive officer and chairman of its board of directors. Dragone will serve as a director of the new company and will advise on integration activities. 14 FLEXO FEBRUARY 2014 www.flexography.org