Packaging Market Weekly Wrap - Gibraltar Packaging to Merge With Rosmar Packaging

Gibraltar Packaging Group has entered into a definitive agreement to merge with Rosmar Packaging Group.

Gibraltar will become a wholly-owned subsidiary of Rosmar subject to Gibraltar stockholder approval and Rosmar obtaining financing to complete the transaction.

The merger is expected to be completed during the second quarter of this year.

Financial details were not disclosed.

PMMI SAYS US CONCERNED OVER SAFETY

The Packaging Machinery Manufacturers Institute (PMMI) says pharmaceutical packagers in the US are likely to use US manufactured packaging equipment, due to increased safety concerns.

According to the PMMI's Industry Segment Market Research Study for Pharmaceutical/Nutraceutical Packaging Machinery, 44 percent of participants say they purchase most of their equipment from US manufacturers, while 28 percent purchase the majority of their equipment offshore.

Product security and tracking will also continue to escalate the importance of packaging and safety in the manufacturing process, the report says.

UK CHARGE ON DISPOSABLE BAGS ANNOUNCED

The UK Chancellor Alistair Darling says shops may be forced to charge for disposable carry bags as early as next year if voluntary reductions in use do not happen.

Darling says the government "wanted to be able to take action" against the "damage inflicted on the environment" by single-use bags.

"We will introduce legislation to impose a charge on such bags if we have not seen sufficient progress on a voluntary basis," he said.

Darling says legislation could lead to a 90 percent reduction, equating to 12 billion bags.

ALTOR BUYS PAPYRUS

Altor Fund II has bought Stora Enso's merchant business Papyrus for approximately €640m.

The transaction consideration consists of approximately €490m in cash, around €93m of net liabilities and a vendor note of €57m.

Stora Enso does not expect to record a book value gain or loss in connection with the transaction and the impact on annual earnings per share will also be non-material.

The sale is expected to be finalised in the second quarter of 2008 subject to statutory approvals.
Source: packaging-technology