CRYSTAL LAKE, Ill.–(BUSINESS WIRE)–AptarGroup, Inc. (NYSE:ATR), a global leader in consumer dispensing, active packaging and drug delivery solutions, announced it has entered into a binding agreement to acquire Fusion Packaging I, L.P. (“FusionPKG”). FusionPKG is a leader in high quality, prestige airless and color cosmetics packaging, and conception-to-launch turnkey solutions for the North American beauty market.
FusionPKG, founded in 2004 by Jonathan Gross and Derek Harvey, has proven engineering, formulation and go-to-market capabilities for the North American fast beauty industry. FusionPKG has existing relationships with many global cosmetic and skin care customers as well as many rapidly growing indie brands. FusionPKG employs approximately 100 people across its headquarters in Dallas, sales and design offices in New York and Los Angeles, and operations in New Jersey and China. For 2019, FusionPKG generated sales of approximately $80 million. The transaction, which is expected to be accretive to Aptar’s Beauty + Home segment margins, is subject to customary closing conditions.
Stephan Tanda, Aptar President and CEO commented on the transaction, “We are very pleased to welcome the FusionPKG team to the Aptar family. This is a key step in our strategy to address market demands for fast beauty solutions with differentiated design and decorative offerings. We are strengthening our formidable portfolio by broadening our agile design and full-service beauty packaging capabilities. FusionPKG’s expertise in turnkey solutions is especially valuable to disruptive indie brands, as well as large established customers requiring expeditious launches. We believe the color cosmetics and skin care markets offer high growth potential, and FusionPKG has been growing at double-digit rates over the past few years. Our plan is to leverage FusionPKG’s market facing strengths in combination with our broad product and technology platforms. FusionPKG is an excellent complement to our current North American business, and there is great potential to scale this model in Europe and other regions.”
Derek Harvey, FusionPKG Co-Founder, stated, “This is the next step in our entrepreneurial growth journey and Aptar is the perfect fit for us. We see tremendous commercial synergies and are very excited about combining our core design and concept-to-launch expertise with Aptar’s global network and broad product portfolio.”
Added FusionPKG Co-Founder, Jonathan Gross, “Our culture is based on innovation, speed to market and flawless execution. Having Aptar’s resources will bolster our products and services, meeting the high demands of fast beauty.”
Wells Fargo Securities acted as the exclusive financial advisor to Aptar in connection with the transaction and Sidley Austin LLP acted as legal counsel.
Upcoming Open Conference Call
Aptar will offer further comments and answer questions about the FusionPKG acquisition during its planned conference call on Friday, February 21, 2020 at 8:00 a.m. Central Time when the Company will discuss fourth quarter and year-end results for 2019. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptar.com. Replay of the conference call can also be accessed for a limited time on the Investor Relations page of the website.