Processors look set to gain from Bosch acquisition

By Jane Byrne

- Last updated on GMT

Related tags: Bosch packaging technology, Technology, Bosch

Bosch Packaging Technologies has announced its purchase of German end packaging equipment builder, Paal Verpackungsmaschinen, in a move that could have cost benefits for food and confectionery manufacturers.

Bosch Packaging Technology’s communications spokesperson Christian Bosshard told FoodProductionDaily.com that the purchase of Paal should enable Bosch to reduce costs by bundling its purchasing volumes.

He also claims that the acquisition means that Bosch will be in a better position to present its multiple-sector customer base with integrated, complete packaging systems and satisfy the growing demand for one-stop shopping opportunities.

According to a joint statement from the two companies, they have agreed to keep the purchase price confidential and the transaction, which was agreed on 5 September, is subject to the approval of antitrust authorities.

Growth strategy

Bosshard said that both companies complement each other exceptionally well and Paal's extensive product range involving machinery for paper, solid fibre board, and compact and corrugated board packaging for the food and cosmetics sectors is an ideal addition to Bosch’s own portfolio.

The company said the acquisition is in line with its objective of pursuing a targeted growth strategy, especially in areas with sophisticated technology.

Bosshard said that bringing Paal under the Bosch umbrella will further enhance Packaging Technology's system competence as Paal has valuable know-how in secondary and multiple component packaging.

“Bosch Packaging Technology will gain access, in particular, to projects involving multiple-unit packaging for wrap-around applications, but also display packaging,”​ he added.

Former partnership

The acquisition follows the formation of a strategic partnership between the two suppliers in October 2007, which Bosch claimed, at the time, was aimed at improving sales of both companies' packaging lines amidst significant growth in the sector, particularly in bag-in-box products.

According to Bosch, it entered into the alliance in autumn last year to tap growing demand among food and beverage groups for both cartons and entire packaging lines, and it instigated a licensing agreement with Paal to manufacture carton machines to enable it step up production of its products.

The company claimed that the alliance would mean food manufacturers could use the expertise and technologies of both Bosch and Paal to further their own packaging needs.

In 2007, Bosch Packaging Technology generated sales of some €650m, while the Stuttgart-based Paal’s sales in the same period amounted to €26m.

Related topics: Processing & Packaging

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