RAP acquired by US group
Tuesday, January 12, 2021
US group ProAmpac has expanded its presence in the UK and Europe with the acquisition of Rapid Action Packaging (RAP).
RAP has a design and technical team based in Wimbledon, with manufacturing in Donegal, Ireland.
It specialises in food packaging for a variety of categories, including food-on-the-go such as sandwich boxes, and with a strong emphasis on sustainability.
Clients include a raft of leading supermarkets, Pret a Manger, Starbucks, Greggs and McDonald’s.
Last year the business revamped its production lines to make lightweight disposable face shields by adapting its sandwich box know-how.
The terms of the deal were not disclosed. In its most recent accounts, to 30 September 2019, RAP posted sales up 9.3% at £35.2m and an operating profit of £1.2m.
Although its business had been impacted by the Covid-19 pandemic, RAP management said the firm’s performance had been “resilient” with EBITDA margins maintained at 6% at the time of filing (October 2020).
ProAmpac has multiple sites across North America. It specialises in flexible packaging including sacks and pouches, made using paper, plastics, and foils.
The group has a UK facility in Melbourn, near Royston, that makes tamper evident bags and mailing bags. It also has operations in Germany and Switzerland.
Chief executive Greg Tucker described RAP as “an excellent addition to the ProAmpac family”.
“We are excited to add RAP’s focus on research and development for fresh prepared food packaging to our portfolio. Together with RAP, we are extending our product reach in food service to now include a ready-to-eat portfolio, and we will continue to bring innovative ideas and products to a growing customer base,” he said.
RAP CEO Graham Williams remains with the business. He said the two firms were “a great cultural fit”.
“Our two companies are highly complementary, with a collaborative working relationship and a common strength in our research and innovation practices.”
RAP was acquired from majority shareholder Ludgate Investments. CEO Gijs Voskamp commented: “We are delighted to have been an integral part in the development of RAP as the leading manufacturer of sustainable food packaging solutions. This investment substantially reduces the plastics footprint in the food packaging market and this transaction reiterates the attractiveness of the sustainability proposition.”
Williams also thanked Ludgate for its financial support and strategic guidance.
The RAP buy takes Cincinnati-headquartered ProAmpac to 37 sites around the world, with around 4,800 employees. It works for more than 5,000 customers in 90 countries. The group is owned by Pritzker Private Capital together with management and other investors.