AptarGroup acquires CSP Technologies
For a total investment of $555 million (€466.7 million), dispensing and sealing solutions supplier AptarGroup has now completed the acquisition of proprietary material science-based firm, CSP Technologies.
Strategic efforts/wider plans
AptarGroup continues to move towards its strategic objective to acquire businesses that occupy a share in appealing marketplaces, boast consistently strong margins, have secure growth opportunities, and utilise proprietary technology.
CSP Technologies falls into this last category as it leverages its proprietary material science knowledge and experience to create and market active packaging technology.
Market expansion
Illinois-headquartered AptarGroup currently has manufacturing plants in its domestic base, the US, along with South America, Europe and Asia.
It provides its innovative solutions to a selection of consumer-facing industries including beauty, personal care, home care, prescription drug, consumer health care, injectables, food, and beverage markets.
As part of the acquisition, AptarGroup will concentrate on CSP Technologies’ current presence in the pharmaceutical and food safety markets, before exploring other potential markets to enter and grow its brand presence in.
Shifting to e-commerce
In September 2018, Mark Kitzis, President of Food and Beverage North America at AptarGroup emphasised the availability and consumer demands for increased access to e-commerce deliveries and the convenience associated with these.
There are a number of challenges when considering distributing dispersion through a digital platform, he explained. Disconnecting closures, closure breakages, lost overcaps, unintended actuation and sealing failures are some of the obstacles facing digital-based and non-traditional shipment methods.
Kitzis stated that “improving the primary package so it withstands the rigours of the e-commerce supply chain”, may well help to overcome these challenges and impact to quality.
Exploring how to achieve this, while continuing its growth strategy, Kitzis, said: “This could involve packaging that’s more durable or adopting innovative options and technologies designed to make the product e-commerce capable.”
Next steps
Looking to the immediate future, Stephan Tanda, President and CEO, shared: “We will begin to integrate CSP Technologies into our global network and together we will continue to develop value-creating, differentiated solutions as a global leader in packaging solutions.”
