Liz Gyekye / PackagingNews

Boise to buy Hexacomb unit from Pregis for $125m

US packaging firm Boise has announced that it will acquire Pregis’ protective packaging business Hexacomb for $125m by the end of the year or early 2012.

Hexacomb, headquartered in Illinois, has 440 employees in 12 locations in the world. Boise has 5,000 employees. Hexacomb makes honeycomb protective packaging, made from kraft paper and water-based adhesives.

Pregis chief executive Glenn Fischer said: “I am pleased to announce the sale of our Hexacomb business.

“The sale of Hexacomb is part of Pregis’ objective to optimise our overall business unit portfolio. I am confident that Hexacomb will continue to thrive under Boise’s ownership.”

This is the second packaging company Boise has purchased this year as it tries to grow its packaging business. The purchase follows Boise’s acquisition of Tharco Packaging in March.


‘Strong growth’

Boise chief executive and president Alexander Toeldte said: “Hexacomb has demonstrated strong growth in both sales and profitability, with compound annual sales growth over 10% since 2009.

“Hexacomb operates in a growing market that is complementary to our existing packaging business and provides another substantial step up in vertical integration within our existing packaging business, creating value by increasing margins and reducing our reliance on linerboard export markets.”

Hexacomb will give Boise reach into Europe and Mexico, company officials said.

In 2010, Hexacomb had revenues of $102 million and converted 60,000 tonnes of containerboard.