Chesapeake to buy Cortegra to build in US
Wisconsin-headquartered Cortegra operates plants in New Jersey and Indiana, which produce information leaflets, self-adhesive labels, folding cartons and combination products for multinational and generic drug companies.
Chesapeake, which will buy Cortegra from fellow packaging maker Menasha Corp, said the firm complements its US manufacturing footprint – which includes plants in New York and North Carolina – and will augment its global supply network.
The deal continues Chesapeake’s efforts to rebuild its pharmaceutical packaging business in the US after its fall into chapter 11 bankruptcy protection in December 2008 and its subsequent acquisition private equity investors.
That agreement saw Irving Place Capital Management and Oaktree Capital Management take control of Chesapeake after paying $485m (€341m) in an accord that saved the firm’s US operations.
Global growth
Buying Cortegra also fits with the growth plan Chesapeake has followed in the last few years, which has seen it build its presence in various regional markets through the acquisition of, or formation of partnerships with, established local players.
In April 2010 Chesapeake bought label and carton maker Cezar, entering both the Polish and Belarusian pharmaceutical packaging markets and expanding its manufacturing capacity in the region.
Later that year Chesapeake partnered with Spanish healthcare and cosmetics packaging concern Cartonajes Leca and French beverage and cosmetics carton maker Papcart in deals designed to further establish its presence in the European market.
Chesapeake did not respond to in-Pharmatechnologist.com’s request for additional information.
In a press statement CEO Mike Cheetham said: “Cortegra enjoys a coveted reputation as a high-quality supplier to the U.S. pharmaceutical market. It is an ideal partner to strengthen our service to customers and adds both size and scale to our US operations.
“The acquisition extends our product range, customer base and our geographical reach. As well as presenting significant cross-selling opportunities, it reinforces our market position and demonstrates our commitment to the key markets we serve.”
