Berry Global Group, Inc. announced that it has completed the acquisition of Laddawn, Inc. Laddawn is a manufacturer of blown polyethylene bags and films with a unique-to-industry e-Commerce sales platform at www.Laddawn.com. Laddawn has a proven track record in delivering strong organic growth generating over $145 million of net sales for the twelve months ended July 31, 2018. Laddawn has 380 employees with five manufacturing sites spread across the United States. “We are extremely excited with what Laddawn’s proven web and mobile sales platforms will bring to our Engineered Materials portfolio, as well as, the possibility to expand these platforms to include other Berry products," said Tom Salmon, Chairman and CEO of Berry. “We believe Laddawn’s highly-technical online capabilities will support immediate growth, via this e-Commerce platform, to assist in quicker customer response times and small order fulfillments for the faster growing small and medium sized customer base. The combined Laddawn and Berry custom film product portfolio will provide a vast range of product offerings to thousands of valued customers further strengthening our core films business.”
-Significant increase in sales and EBITDA following acquisition of the Tann-Group
-High capacity utilization in both divisions
-Visibility of demand is shortening
The Group’s consolidated sales increased by EUR 50.8 million or 8.6 % to EUR 642.9 million (1Q 2018: EUR 592.1 million), the EBITDA by 8.7 % to EUR 90.9 million (1Q 2018: EUR 83.6 million).
One-off acquisition effects from the initial consolidation of the Tann-Group were reported in the amount of around EUR -7 million due to recognition of order backlog and inventory measurement. Therefore, operating profit at EUR 57.2 million was at previous year’s level (1Q 2018: EUR 57.1 million), resulting in an operating margin of 8.9 % (1Q 2018: 9.6 %).
In the first quarter of 2019, the Mayr-Melnhof Group was able to maintain its position well in a market environment that was stable but intensely competitive due to a lack of momentum. The income statement and balance sheet are affected by the initial consolidation of the Tann-Group. Sales as well as profit for the period exceeded the comparative value of the previous year. Both divisions reported overall high capacity utilization. While MM Packaging achieved a slight increase in result, MM Karton again reached the high level of the previous year with a robust price and volume development.
The substantial growth in sales and EBITDA largely results from the acquisition. Its inclusion into the Group and the MM Packaging division took effect as of January 15, 2019, under consideration of one-off effects relating to the initial consolidation from which no further profit impact is expected for the remaining financial year. Nevertheless, the EBITDA increased significantly.