New Zealand-based investment group Rank has begun preliminary talks over the possibility of acquiring American firm Blue Ridge Paper Products, in a bid to continue its rapid consolidation of the global beverage packaging market.
Blue Ridge yesterday confirmed that it was in discussions with Rank as part of a non-binding letter of intent involving the sale of its assets, though it added that it has yet to commit to any deal.
The successful purchase of the group would see Rank further expand its presence in the lucrative US and European packaging markets, increasing competitiveness amongst its regional rivals to meet demand for food packaging.
Whilst operating predominantly as a multi-purpose paper company, Blue Ridge is also a major producer of cardboard cartons for milk.
It is these operations that will most complement Rank's other packaging assets, which have been acquired during an increasingly busy year for the investment firm.
Last month, Rank finalised a deal to acquire International Paper's drinks packaging business for €382.8m.
This has allowed Rank to sell products such as liquid paperboard packaging for dairy products and juice. The unit has plants in North America and Asia.
This acquisition was followed this month with the announcement that Rank had beaten rival bids from Norway's Exopac, to purchase Swiss giant SIG Holding.
The move is expected to make Rank, through its Carter Holt Harvey company, the world's second largest producer of beverage packaging after Sweden-based Tetra Laval.
The possible sale of Blue Ridge further highlights the growing appetite particularly amongst Asia Pacific companies to enter into the dynamic US and European beverage packaging industry.
Last year, Australian firm Amcor revealed that it had managed to offset declining revenues from its cardboard operations through increased sales of its beverage products in the US and Europe.
This saw the group - which is already the world's largest producer of plastic bottles - increase its sales throughout the sector.
Of this increase, aluminium beverage cans proved a particularly strong segment with sales rising 6 per cent, though the company also reported strong sales of glass wine bottles.
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