Nordic food packaging businesses agree merger plan

BEWI, a leading provider of food and seafood packaging components, is set to merge its traded food packaging business with STOK Emballage (“STOK”), forming a combined Northern European packaging solutions group.

BEWI will receive a cash consideration of €20m (£16.7m) in addition to an ownership position in the combined entity of around 15%.

Christian Bekken, CEO with BEWI, said: “Partnering with STOK presents a unique opportunity to further expand the traded food packaging business with a highly capable partner.”

BEWI’s traded food packaging business currently has net sales of approximately €75m (£62.5m).

The business has a solid position within seafood and food packaging in Norway and Iceland, with a particular focus on the seafood industry.

STOK is a leading value-added distributor of protective packaging in Denmark and Greenland and provides a one -stop solution of packaging products, machinery, logistics services and regulatory and compliance advice.

The company has strategically located warehouses in Denmark, Greenland and Norway. The complimentary combination of BEWI’s traded food packaging business and STOK creates a leading packaging distributor across Denmark, Norway, Iceland and Greenland.

STOK had sales last year of €113m (£94.2m). The new combined company will have annual sales of close to €190m (£158.4m) and a clear strategy for further growth, said the announcement.

Christian Bekken added: “STOK is an ideal partner for our traded packaging business, and we are truly looking forward to joining forces with their team of industry experts.

“They have an impressive track record of profitable growth over several years, and their broad and diverse product portfolio complements ours very well, creating a strong potential for synergies and further growth opportunities.”

BEWI EPS (expanded polystyrene) fish boxes