Israeli manufacturer of trays for the food industry MCP Performance Plastic has been acquired by Danish manufacturer of food packaging solutions, Faerch for €57 million ($67 million). This was the figure set for MCP’s valuation at the end of 2020.
Based in Kibbutz Hama’apil in Emek Hefer, MCP’s two owners Plazit Industries of Kibbutz Gazit (50.1%) and Kibbutz Hama’apil (49.9%) will come away in the end with just NIS 85 million ($23.4) million, before tax, according to Globes.
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This is because MCP has debts amounting to NIS 50 million, which will be deducted from the full sale price.
In a blog post, MCP stated, “The acquisition will further strengthen our position in the rigid food packaging, and will enable us to expand our product range by accelerating the industry’s transition to actual circularity by expanding ‘tray-to-tray recycling’.”
MCP is manufacturer of turnkey co-extruded thermoplastic packaging solutions that meet the needs of today’s food industry. The company’s two large-scale, production facilities are strategically located in Israel and the US.
The company has over 500 tray designs suitable for the Ready Meal market for the aviation industry, hospitals, care facilities, school nutrition programs and more.
One of MCP’s outstanding developments is a dual-ovenable CPET tray that is suitable for heating in both a microwave and a conventional oven, able to withstand temperatures from as low as -40°C to as high as +220°C.
Faerch CEO Lars Gade Hansen said, “MCP will serve as a stepping stone for Faerch entering the important US market, which is estimated to account for $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.