Faerch buys kibbutz plastic along with MCP


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Danish food packaging company Faerch has announced that it is purchasing MCP Performance Plastic from Kibbutz Hama’apil in Emek Hefer, which produces trays for the food industry. The acquisition is based on the company’s estimate for the MCP of 57 million euros at the end of 2020.

However, “Globes” understands that the owners of MCP Plazit Industries from Kibbutz Gazit (50.1%) and Kibbutz Hama’apil (49.9%) will receive less than this amount because the company has debts of 50 million NIS – and, so after the debt is taken away, each kibbutz will receive 85 million NIS before taxation.

MCP, which was founded more than 40 years ago, has more than 200 employees in its two factories in Israel and the United States. The company has revenues of several tens of millions of dollars a year. MCP uses advanced innovative technology to develop and manufacture food packaging that can be taken directly from the freezer and placed in a microwave or oven. Customers include food producers, food marketing companies and retail chains in the United States, Europe and the Middle East.

75% of production in Israel goes for export, and a factory that opened in the U.S. in 2017 increased MCP revenue by 30%.

Faerch Group, a leading supplier of sustainable thermoformed food packaging with integrated recycling capabilities in Europe, has made an acquisition to enter the US market. Faerch added that the acquisition is part of its “long-term growth strategy and supports the ambition to lead the transition of food packaging towards proper circulation globally.”

Under the terms of the agreement, the MCP will continue to operate from Kibbutz Hama’apil for at least the next five years, until the end of the 2026 agreement. During that time, Faerch will formulate a plan regarding the kibbutz factory. For now, there will be no effect on MCP employees.

Faerch CEO Lars Gade Hansen said: “The MCP will serve as a springboard for Faerch to enter the important US market, which is estimated at $ 55 billion. Being domestic will allow us to support retailers, brand owners and food producers in making the right the choice of materials for true circulation in the U.S. food packaging market.

Posted by Globes, Israeli Business News – en.globes.co.il – August 23, 2021

Copyright by Globes Itonut (1983) Ltd. 2021


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