Established in 2002, Challenge Packaging offers end-to-end services, from design to delivery, and said it blends its manufacturing strength with the flexibility of a merchant, serving a diverse customer base through its B2B and e-commerce sales channels.
From its facility near Hailsham in East Sussex, Challenge provides packaging for retail, e-commerce, and fresh food businesses, as well as FMCG and industrial clients.
The Logson Group is an independent group of packaging companies that collectively employ 1,300 people and have a turnover of over £400m. The group includes Board24, Boxes and Packaging, Cases24, Jardin Corrugated, Red Rose Packaging, Boxshop, The Cardboard Box Company, and Durham Box.
The Coalville, Leicestershire-headquartered group’s latest acquisition was completed in December and followed its purchase of a majority shareholding in packaging and PoS printer Durham Box last summer.
Logson said its acquisition of Challenge enhances the group’s offering in the South East. Logson is backed by W&R Barnett, a large, diversified group of international commodity trading, storage, agricultural, and industrial businesses, based in Northern Ireland.
Business advisory firm Quantuma’s managing director Mark Lucas and associate director George Jackson led the sales process for Challenge on behalf of the shareholders, advising them on the business plan and market positioning and undertaking a dual track strategic marketing process.
This generated significant interest from both financial and trade investors and ultimately identified the Logson Group as the preferred bidder.
Lucas said: “This transaction delivers continuity for Challenge Packaging as part of the Logson Group, an exciting and ambitious growth platform in the sector, and allows the sellers to secure the shareholder value created by Challenge’s growth trajectory and investments.
“The Quantuma team is delighted to have advised the shareholders on the deal. They have built an absolutely fantastic business, which has found a great home to continue its journey with Logson.”
Challenge sales director Colin Prior and chairman Simon Allen, along with the rest of the existing management team, will remain with the business, continuing to lead Challenge Packaging as a standalone business within the Logson Group. Challenge's team of around 90 staff have also been kept on. The business had a turnover of £18.6m in 2022.
Allen said: “I am delighted to be involved in the next phase of Challenge Packaging’s development as we progress our future plans.
“Our alignment with The Logson Group ethos serves to strengthen our market position whilst further diversifying our offering as we strive to maintain and grow our reputation as the South East’s leading packaging solution provider.”
Martin Coppard, managing director at Challenge Packaging, added: “I am incredibly excited to work with the entire Challenge team, alongside colleagues at Logson Group, as we begin the next phase of our journey.
“Joining with Logson, as our ideal partner, allows us to expand and evolve our market-leading capabilities and drive customer service to new levels.”
David Richardson, Logson Group CEO, also commented: “Challenge Packaging is a great addition to the Logson family, and we are pleased to have acquired the business, allowing us to expand our reach into the South East of the country.
“Simon, Colin, and the team at Challenge Packaging have built a very strong business that has shown continued growth and development over many years.
“There is a strong correlation between the two organisations in terms of culture, drive, and approach to customers. We are very excited to be able to share expertise and capabilities with the wider Logson Group.”
