Denmark-based Faerch Group, a European supplier of sustainable rigid packaging solutions for the food industry and the world’s first integrated tray recycler has announced that is acquiring Israeli packaging producer, MCP Performance Plastic. A manufacturer of turn-key packaging solutions mainly for the food industry, MCP has two production sites, one in the US and the other in Israel, where the company manufactures a broad range of food trays made from CPET, APET and PP.
For Faerch, the acquisition marks the first since becoming part of the A.P. Moller Group earlier this year and is in line its aim to increase the momentum in the food packaging industry for transitioning towards circularity and scaling its recycling business into additional countries. As the world’s only integrated recycler of PET pots, tubs and trays, Faerch offers tray-to-tray recycling on an industrial scale, taking back used PET food packaging and recycling this into new food grade pots, tubs and trays of the same quality.
“Our circular solutions will complement MCP’s product range, setting us jointly at the forefront of making food packaging circular also beyond Europe, ” said Lars Gade Hansen, CEO of Faerch Group
The acquisition also represents the first time Faerch has looked to expand its geographical presence outside of Europe. In particular, the transaction opens the door for Faerch to the US market.
“MCP will serve as a stepping stone for Faerch entering the important US market, which is estimated to account for USD 55 billion. Being local will allow us to support the retailers, brand owners and food manufactures in making the right material choice for true circularity in the US food packaging market,” said Lars Gade Hansen, CEO of Faerch Group. The company will also be able to rely on A.P. Moller Holding’s long experience - over 100 years - in the US market.
“We are delighted to be able to utilise this exceptional experience when taking this next step to expand our operations to the US,” Hansen added.
The transaction is expected to close within three months, subject to customary closing conditions and regulatory approval.