Aptar to Acquire FusionPKG, A Leader in Turnkey Solutions for the Beauty Market
AptarGroup, Inc. (NYSE:ATR), a global leader in consumer dispensing, active packaging and drug delivery solutions, announced it has entered into a binding agreement to acquire Fusion Packaging I, L.P. ("FusionPKG"). FusionPKG is a leader in high quality, prestige airless and color cosmetics packaging, and conception-to-launch turnkey solutions for the North American beauty market.
FusionPKG, founded in 2004 by Jonathan Gross and Derek Harvey, has proven engineering, formulation and go-to-market capabilities for the North American fast beauty industry. FusionPKG has existing relationships with many global cosmetic and skin care customers as well as many rapidly growing indie brands. FusionPKG employs approximately 100 people across its headquarters in Dallas, sales and design offices in New York and Los Angeles, and operations in New Jersey and China. For 2019, FusionPKG generated sales of approximately $80 million. The transaction, which is expected to be accretive to Aptar's Beauty + Home segment margins, is subject to customary closing conditions.
Stephan Tanda, Aptar President and CEO commented on the transaction, "We are very pleased to welcome the FusionPKG team to the Aptar family. This is a key step in our strategy to address market demands for fast beauty solutions with differentiated design and decorative offerings. We are strengthening our formidable portfolio by broadening our agile design and full-service beauty packaging capabilities. FusionPKG's expertise in turnkey solutions is especially valuable to disruptive indie brands, as well as large established customers requiring expeditious launches. We believe the color cosmetics and skin care markets offer high growth potential, and FusionPKG has been growing at double-digit rates over the past few years. Our plan is to leverage FusionPKG's market facing strengths in combination with our broad product and technology platforms. FusionPKG is an excellent complement to our current North American business, and there is great potential to scale this model in Europe and other regions."
Derek Harvey, FusionPKG Co-Founder, stated, "This is the next step in our entrepreneurial growth journey and Aptar is the perfect fit for us. We see tremendous commercial synergies and are very excited about combining our core design and concept-to-launch expertise with Aptar's global network and broad product portfolio."
Added FusionPKG Co-Founder, Jonathan Gross, "Our culture is based on innovation, speed to market and flawless execution. Having Aptar's resources will bolster our products and services, meeting the high demands of fast beauty."
Wells Fargo Securities acted as the exclusive financial advisor to Aptar in connection with the transaction and Sidley Austin LLP acted as legal counsel.
Upcoming Open Conference Call
Aptar will offer further comments and answer questions about the FusionPKG acquisition during its planned conference call on Friday, February 21, 2020 at 8:00 a.m. Central Time when the Company will discuss fourth quarter and year-end results for 2019. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptar.com. Replay of the conference call can also be accessed for a limited time on the Investor Relations page of the website.
About Aptar
Aptar is a global leader in the design and manufacturing of a broad range of drug delivery, consumer product dispensing and active packaging solutions. Aptar uses insights, design, engineering and science to create dosing, dispensing and protective packaging technologies for the world's leading brands, in turn making a meaningful difference in the lives, looks, health and homes of millions of people around the world. Aptar's innovative solutions serve a variety of end markets including pharmaceutical, beauty, personal care, home, food and beverage. The company is headquartered in Crystal Lake, Illinois and has 14,000 dedicated employees in 17 countries. For more information, visit www.aptar.com.
This press release contains forward-looking statements and statements regarding the anticipated effect of acquisitions. Words such as "expects," "anticipates," "believes," "estimates," "future," "potential" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could" are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on our beliefs as well as assumptions made by and information currently available to us. Accordingly, our actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment including, but not limited to: the completion of the FusionPKG acquisition; the expected benefits of the FusionPKG acquisition; the successful integration of the FusionPKG acquisition; and the impact of public health crises or other significant or catastrophic events. For additional information on these and other risks and uncertainties, please see our filings with the Securities and Exchange Commission, including the discussion under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-Ks and Form 10-Qs. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
News published on and distributed by:
