Sarantis group announces the acquisition of Polipak in Poland

Sarantis Group finalized on 17/12/2015 the acquisition of the Polish packaging products Company Polipak Sp. z.o.o.

More specifically, Sarantis Polska S.A., a 100% subsidiary of GR. SARANTIS S.A., signed an agreement for the acquisition of 70% of the share capital of Polipak Sp. z.o.o.

This acquisition, completed within the context of the Group’s strategic growth plan, supports further the Group’s geographical footprint in the market where it already operates and provides growth opportunities for the Group into new markets.

Polipak is a producer of polyethylene-film-based packaging products (mainly garbage bags), having warehousing and production facilities in Poland.

The Company’s current production involves mainly private label garbage bags and Sarantis Group branded garbage bags, covering at the moment 10% of Sarantis Group’s needs.

Excluding Sarantis Group business, Polipak’s annual sales for 2015 will amount to approximately 13.7 mil euros., while the EBITDA margin is expected to reach 10%.

The acquisition cost amounted to 4.5 mil. euros, while the transaction was self-financed.

Sarantis Group’s management initial focus will be targeted on transferring within 2016 all of its garbage bags production to Polipak exploiting the benefits on the production cost, while at the same time appropriate preparations will be done in order for the Group to expand at a later stage the existing private label business.

This acquisition is a great fit for Sarantis Group, as it not only supports its existing core business activity of branded household products, but it also provides the opportunity for the Group to penetrate the private label market.

Taking advantage of the improved unit cost, Sarantis Group can capitalize on its existing partnerships, as well as expand the client base by penetrating the discounter stores market.