DuPont wants to be global leader in liquid packaging

DuPont Canada Inc. is placing a big bet on the US$ 5-billion liquid packaging business, agreeing on 26 March to pay US$ 333 million – the biggest deal in its 125-year history – for a US company specia…

DuPont Canada Inc. is placing a big bet on the US$ 5-billion liquid packaging business, agreeing on 26 March to pay US$ 333 million – the biggest deal in its 125-year history – for a US company specializing in the field. The Canadian subsidiary of DuPont will acquire Liqui-Box Corp. for US$ 67 a share – or 33.7% more than the closing price on 25 March for Liqui-Box“s stock. With the deal, DuPont Canada says it is positioned to be a global leader in the liquid packaging – or the manufacturing of products to store food and beverages. The Liqui-Box board has approved the deal. Samuel B. Davis, company chairman and chief executive, and his son, vice-chairman Samuel N. Davis, who together control 38% of the Worthington, Ohio, company, agreed to vote in favour of the DuPont purchase. DuPont Canada will combine Liqui-Box with its Enhance Packaging Technologies, Inc. unit to establish a liquid packaging outfit that“s expected to generate annual sales of US$ 400-million in the US$ 5-billion worldwide field. The company will have more than 1,000 employees and operations in North America, South America, Europe and Asia. DuPont Canada estimates the liquid packaging sector is set to grow 7% a year in North America, and 8% to 10% a year in emerging markets, especially China and India. Liquid packaging involves storing food and liquids. DuPont“s Enhance unit is focused on the retail side, and one of its high-profile products is the material used to create milk bags. Liqui-Box, conversely, specializes in the institutional market, servicing restaurant chains, dairy producers and food processors, with products that hold and store, among other things, wine, ketchup, mustard and apple sauce.