Here are some Converting Curmudgeon bullet points:
“Mondi’s Growth Path in Consumer Packaging” by Wolfgang Berger, head of strategic and business development, Mondi Group (Austria):
- Mondi employs 25,000+ people across more than 30 countries; key operations in Central Europe, Russia, North America and South Africa; 2015 revenues were €6.819 billion.
- Seeking to build on consumer packaging as leading producer in core applications of personal-care, food, pet food, industrial; via an integrated value chain of film extrusion, printing, coating & laminating, slitting & pouch/bagmaking; using an international production capability of 17 plants in Europe and Russia, six plants in USA and four in Asia.
- Strong FMCG customer focus with 2014 revenue of €1.3 billion in consumer packaging (35% personal-care; 20% food; 14% pet food; 16% industrial; 13% other.
- Invest in high-quality, low-cost assets to work with customer to find innovative solutions to apply to all operations, improving efficiencies and margins.
- Since mid-2015, product portfolio has dropped most industrial and lamination films; divestiture of Osterburken and Ipoh, acquisition of Ascania and KSP repositions the business to higher value-added products.
- New approach to innovation: Focus not only on needs of direct customers but also on needs of all participants in different stages of the value chain. Three-year process takes technology from many sources, does market and tech feasibility leading to concept and prototype development, then commercialization. Emphasis on leveraging cost advantages of Central and Eastern European plants.
- Seeking significant value creation to 2020 through sustainable profit growth from combination of market growth, market-share growth and margin expansion.
“Acquisition of Spear: Background, key learnings and success factors” by Richard Kelsey, head of M&A, Constantia Flexibles (Austria):
- Strategy before the acquisition had a focus on core products (lidding, laminates, p-s labels, in-mold labels, confectionery foil, pharma blisters) to serve core markets (coffee & tea bags, pet-food pouches, personal-care pouches/sachets, home care) in Eastern Europe, US, Mexico, Brazil, India, China.
- Founded in 1982, Spear was headquartered in Cincinnati (OH) with four plants in North America, one in Wales (UK) and one in South Africa; producing p-s and cut-and-stack labels and reseals.
- Global beverage and beer market growth for p-s labels drove attention toward Spear; consolidating brewer market (customers) was another driving force as top four players went from 23% global share in 2010 to 50% in 2011.
- Geographic fit as well: Constantia and Spear strongly complement each other’s regional portfolios; Constantia big in Europe, Latin America and parts of Asia; Spear present in North America, UK and South Africa.
- Key learnings: Earn-outs work but are not easy to deal with; entrepreneurs are not easy to integrate; integration takes time and effort.
- Success factors: M&A is a contact sport; were able to move quickly and decisively; were able to structure the deal to bridge valuation expectations of sellers.