Cork-based packaging group Zeus has acquired the UK’s longest-established paper sack and packaging manufacturer in a deal valued at about £25 million (€28.6 million).
Founded in 1903, Simpac Ltd specialises in paper sacks, mailers, branded carrier bags, and food wraps. It has established itself as a leading player in developing sustainable packaging for its customers across retail, ecommerce and the agricultural sector.
It operates from facilities in Hull and Glasgow with more than 130 employees, and generates revenues of about £30 million (€34.3 million) a year.
This is the latest acquisition by Zeus this year. In June, the company completed bolt-on deals in England and Spain that would add €20 million to its annual revenues.
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“This deal puts us well in excess of €500 million [in revenues this year] and puts us on the track for annualised €600 million next year,” Zeus’s owner and founder Brian O’ Sullivan told The Irish Times.
Mr O’Sullivan said Simac’s expertise in sacks, wraps, and branded packaging complements his company’s capabilities in retail, ecommerce, industrial, food and agricultural packaging.
“They essentially have three separate manufacturing facilities. One is for retail goods for supermarkets and that sector, the second is ecommerce, which is clearly right on point at the moment with all the packaging that is required.
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“It produces mailer envelopes for ecommerce that are 40 per cent more environmentally friendly than the current paper envelopes that are out there. We are one of the only producers in Europe that produce this lighter envelope.
“The third factory in Hull produces all paper sacks and its one of three such producers in the UK and Ireland. Overall, it brings more packaging, all completely sustainable, and this will drive us forward on the sustainable packaging route.”
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Commenting on the deal, Sandy Bole, Simpac’s managing director, said: “Our focus has always been on innovation – whether in branded food wraps, sustainable mailers, or productivity-enhancing technologies like the Paper Lift Liner.
“By joining Zeus, we now have the platform, scale, and resources to accelerate these innovations, expand our international reach, and deliver even more value to our combined customers.”
Mr Bole will continue to run Simpac post the acquisition.
On whether Zeus was done for this year in terms of acquisitions, Mr O’Sullivan said: “I’m not done. I’d like to think there’s another one in us for this year.”
Founded in 1998, Zeus employs more than 1,300 people across 42 countries in Europe, New Zealand, Canada, the US, China and Australia.
It provides sustainable packaging across food service, retail, industrial, agricultural and ecommerce sectors.
Mr O’Sullivan was named the EY Entrepreneur of the Year in 2021. At that time, the company employed about 670 staff and had annual revenues of €300 million.
