IPACKCHEM bought by Greif group globally
DRIVERS on Malibongwe Road near Kya Sand may notice a recent change in signage at the Ipackchem plant in Cosmo Business Park. As of March 2024, the facility is now part of Greif, a global leader in industrial packaging products and services based in Delaware, Ohio USA
With the acquisition of the international Ipackchem plastic packaging group, Greif of the USA added 13 facilities in eight countries to its manufacturing network, which now includes more than 15,000 employees and 250 facilities in 37 countries. Included in that list is the Ipackchem blow moulding facility in Lanseria, Johannesburg, which now adds to Greif’s two other South Africa locations, in Vanderbijlpark and Mobeni.
The plastic blow moulding business, originally known as Quadro Plastics and based in Strydom Park in Johannesburg, was founded by Ken Morgan in 1987 before being acquired by Ipackchem in 2015. The deal saw operations moved to a modern facility in Cosmo Business Park near Lanseria airport in 2018 with Ken’s sons – Simon and Matthew Morgan – continuing their responsibilities for managing day-to-day facility operations and sales and marketing, respectively.
As part of the Ipackchem integration, the business adopted the use of state-of-the-art, sustainable fluorination barrier technology for rigid containers. The proprietary process, which has UN packaging certification, ensures material within the container does not migrate out, while also preventing oxygen and other particles from migrating in. This is particularly important for packaging that contains chemicals for crop protection, specialty chemicals, as well as ensuring flavour and fragrances remain free from contamination.
In 2022, Ipackchem was also recognised for its advanced use of recycled materials and post-consumer resin (PCR) with a Gold Pack Award.
The Future of Packaging
Ipackchem’s legacy of providing innovative plastic packaging with high-performing, sustainable barrier technology will continue under Greif. In acquiring this business, Greif is unlocking significant new capabilities and market opportunities to continue its growth as a world leader in customised polymer solutions, serving critical markets both in South Africa and beyond.
Simon Morgan continues to manage the Lanseria facility providing seamless operations for Greif, while Matthew Morgan continues in his role in sales and marketing.
Financial details
In 2021, Ipackchem was purchased by SK Capital of New York. Then, subsequently, Greif acquired Ipackchem from SK Capital in 2023 for the announced transaction value of $538 million, plus $38 million for a ticking fee that compensates the seller for earnings that inure to Greif, other customary debt/cash adjustment items and FX impact. The payment was funded through the company’s existing credit facility. The acquisition is expected to be immediately accretive to Greif’s EBITDA margins
Ipackchem’s financial results will be reported within the company’s Customised Polymer Solutions segment. It is understood that Greif has purchased the shares in Ipackchem held by the management of the South African business.