US-based flexible paper and plastic packaging firm Exopack and European firms Paccor and Kobusch will join Paragon and Britton Group to form the new company.

The businesses will operate under the banner of Exopack Holdings, which will have its headquarters in Luxembourg, although all five will retain their individual brand names.

Once the merger is complete Exopack Holdings will have 63 plants globally, around 8,650 employees and a turnover of more that $2.5bn.

It will be divided into a flexibles division headed by Michael Cronin and a rigid division headed by Paccor chief executive Dieter Bergner. The combined business will be headed up by current Exopack chief executive Jack Knott.

"By joining together to form this new entity, we will be better able to serve the needs of our global customers through a manufacturing base spanning North America, Europe, the Middle East and China that enhances our ability to deliver outstanding service," said Knott.

"The larger scale will enable us to accelerate the development and commercialisation of new and differentiated products that offer our customers a competitive advantage," he added.

The merger follows a raft of packaging acquisitions by Sun Capital Partners culminating with the majority share purchase of Paragon Print and Packaging in December last year.

In 2005 Sun Capital bought US-based Exopack from the Sterling Group in Houston. Sun Capital's European arm, Sun European bought German firms Paccor in 2010 and Kobusch in 2011 followed the same year by UK-headquartered Britton Group.

"This combination represents a natural next step in a process that began eight years ago to create a global packaging company with a solid foundation for future growth," said Marc Leder, co-chief executive of Sun Capital Partners.

"Building on past collaborations between the companies, the combination will immediately achieve synergies and allow the combined company to more effectively pursue global business."

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