Josh Brooks / packagingnews.co.uk

Chesapeake adds two US sites in Cortegra buy

EXCLUSIVE – Chesapeake has moved into second position in the US pharmaceutical cartons market with the acquisition of Cortegra from Menasha.

The addition of the $30m-turnover business, announced today, will almost double Chesapeake’s reach in the US.

Cortegra has two sites employing around 150 staff in Fairfield, New Jersey on the east coast and Evansville, Indiana in the mid-west. Chesapeake already runs three pharmaceutical carton sites, two in North Carolina and one in New York state.

The acquisition, whose financial details have not been made public, brings Chesapeake’s total number of worldwide sites to 42.

Chesapeake chief executive Mike Cheetham said: “Cortegra enjoys a coveted reputation as a high-quality supplier to the U.S. pharmaceutical market. It is an ideal partner to strengthen our service to customers and adds both size and scale to our U.S. operations.

“The acquisition extends our product range, customer base and our geographical reach. As well as presenting significant cross-selling opportunities, it reinforces our market position and demonstrates our commitment to the key markets we serve.”

More planned growth

He added that the acquisition was part of a wider strategy to grow the business and that the company would continue to examine how to grow through both acquisition and “customer-focused investment”.

Menasha Corporation president and chief , Jim Kotek, said: “Aligning Cortegra with Chesapeake will position Cortegra for future growth and investments in innovative technology that will be of great benefit first and foremost to its customers, as well as to the business and its employees.”

The deal comes just over three months after Cheetham, who had previously run Chesapeake’s Pharmaceutical and Healthcare business, took on the top role at Chesapeake.

He replaced Jerry Kerins, who moved into the role of chairman and is based in the US.