P. Van De Velde Group strengthens market position in folding carton industry by acquisition of Royal Schut
With this acquisition, P. Van de Velde will further expand its folding carton activities, which operate under the name Van De Velde Packaging. Combining two complimentary enterprises into one strong organisation offers the group new opportunities to embrace the market shift toward folding carton packaging and folding synthetics packaging.
Van De Velde Packaging is the folding carton department within P. Van De Velde Group and is active in Lichtervelde (Belgium), Kruishoutem (Belgium) and Poznan (Poland). The folded carton packaging is namely distributed throughout the food, drink and healthcare markets. In addition, P. Van De Velde produces solid carton packaging in its factory in Wetteren (Belgium). P. Van De Velde Group processes some 40,000 tonnes of packaging annually. The Royal Schut acquisition will add an additional 10,000 tonnes.
The acquisition solidifies Van De Velde Packaging’s position in Europe, and within the Dutch market in particular. Focused on future growth As a family-run enterprise, P. Van De Velde Group has a long-term growth strategy and an expansive investment policy. Businesses within the group are led with considerable autonomy and space for local entrepreneurship while also benefiting from the support of centralised services.
Jos Hoogendijk, general director of Royal Schut in response to the acquisition: “I’m very enthusiastic about the opportunities that this will provide our company. The international client portfolio and the ambitions of P. Van De Velde Group will enable us to achieve our growth objectives.”
The Royal Schut locations will continue to operate in the current form and at the same address in Eerbeek. Schut’s current management team will remain responsible for daily business operations. Royal Schut, established in 1886, expanded from small family-run business to a substantial market player in the packaging industry and holds a strong reputation. Royal Schut operates via two subsidiaries: Schut Packaging (www.schut.nl) and Schut Systems (www.schutsystems.com). Schut Packaging creates added value for clients in the food and non-food sectors with the smartest packaging solutions – from folding carton to folding synthetics and any combination of the two. Schut systems provides machines for the preparation, filling and closing of carton boxes as well as machines for the application of carton sleeves.
Fortaleza Capital operated on behalf of P. Van De Velde Group as corporate finance consultant for this transaction and BarentsKrans served as legal advisor. www.fortalezacapital.nl; www.barentskrans.nl HarveyBloom acted as legal and fiscal consultant for Packschut Holding, former Royal Schut shareholder. www.harveybloom.com