LIQUI-BOX and DS Smith’s Plastics Division join together to create a new sustainable packaging business. Credit: Liqui-Box.

US-based flexible packaging solutions firm Liqui-Box is set to purchase the Plastics Division of DS Smith in an effort to create a new business in flexible and rigid packaging category.

Headquartered in Chicago, the Plastics Division produces sustainable flexible packaging and dispensing solutions, plastics extrusion, injection-moulded and foam products. It employs more than 2,000 people across 26 facilities in North America, Europe, and the Asia-Pacific.

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The Plastics Division of DS Smith includes the Rapak and Worldwide Dispenser businesses. It employs more than 2,000 people across 26 facilities in North America, Europe, and the Asia-Pacific.

With the transaction, the combination will have a global presence, design capabilities and service platform.

Liqui-Box CEO Ken Swanson said: “The combination with DS Smith Plastics advances our strategic initiative to create the leading innovator of sustainable flexible and rigid packaging solutions.

“This business has a significant synergistic fit with Liqui-Box and a product portfolio and manufacturing footprint that are highly complementary. This combination will be transformational for both companies and an exciting growth story for our employees and customers.”

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“The combination with DS Smith Plastics advances our strategic initiative to create the leading innovator of sustainable flexible and rigid packaging solutions.”

Following completion of the transaction, the combined entity is expected to serve customers from 35 manufacturing plants across five continents.

It will also have a converting and moulding equipment platform to deliver products, multiple labs and testing facilities for expanded research and development operations, as well as materials and process advancements to produce environmentally sustainable products.

Swanson added: “We have always had a great deal of respect for the DS Smith team and are excited by the prospect of working together to create a strong management team and skilled workforce with a shared vision and purpose.”

The transaction is currently subject to customary closing conditions, including regulatory approvals.

Liqui-Box offers sustainable packaging solutions, including delivery of liquid and semi-liquid products. It produces Bag-in-Box flexible packaging, fitments and pouches to dairy, beverage, food and non-food industries.