The purchase of the €58m turnover Austrian headquartered food packaging specialist, Petruzalek, which was part of the Sirap-Gema Group, signed on Monday (8 February).

The deal for the group, which includes Petruzalek operations in Austria and Central-Eastern Europe and €8m turnover Sirap GmbH in Germany, is subject to usual closing conditions and is expected to complete in the second quarter of 2021.

The sale is part of Sirap-Gema parent Italmobiliare’s disposal of non-core assets.

The Italian investment holding company disposed of its food packaging businesses in Italy, Spain and Poland to food tray specialist Faerch Group last month. However, it retains the Sirap operations in France and the UK, which have combined revenues of around €70m.

Terms of the sale of the Petruzalek operations, which last year generated an EBITDA of €2.5m, were undisclosed.

It is the seventh business to be absorbed into the Zeus Packaging Group in the past 18 months and, according to the group, this deal is the culmination of a three-year €40m acquisition strategy.

“This latest acquisition is the largest in our strategic expansion, and along with recent investments in our leadership operational infrastructure, is an integral part of Zeus’s long-term growth strategy,” said Zeus CEO Keith Ockenden.

“Petruzalek’s product range utilises low environmental impact renewable, recyclable and compostable materials enabling us to further deepen our focus on sustainability in 2021.

“As always, we are committed to delivering innovative sustainable packaging solutions for our valued clients in Ireland, the UK and across Europe. This move enables a true European supply solution for customers looking to consolidate supply chains and maximise cost efficiencies.”

The group now operates across 26 countries including the UK, where it has six sites, along with facilities in Germany, Spain, Poland, Canada, New Zealand, Australia and China.

It now employs 670 staff and generated sales of €208m last year and has set its sights on €280m in 2021.

Zeus founder Brian O’Sullivan said that despite the pandemic the group breached the €200m revenue milestone last year and with this latest deal it “remains on track to become the largest independent packaging distribution business in Europe”.