Payne Tear Tape firm acquires BP Labels in 4.5m deal

CSP already includes Payne Tear Tape and Payne Security and divisional managing director Tony Edwards said BP would be a good fit for the firm as it would allow it to expand further into markets such as pharmaceuticals.

“We were looking to broaden our product offering to existing customers and a number of areas where tear tape is not the right medium for authentication,” he told Packaging News.

“We’ve been working in partnership with BP for a number of years and labels became a logical capability to add,” said Edwards.

The consideration for the acquisition is up to a maximum of £4.5m in cash to the family and employee shareholders of BP.

Cardiff-based BP manufactures a range of labels for the pharmaceutical, healthcare, cosmetics and food and drink markets and the entire team will remain on board.

The company will continue to operate under the BP name, but Edwards said the firm would look at synergies and how the businesses could share technologies and expertise.

“The priority now is looking after customers and growing the business,” said Edwards.

BP managing director Andrew Wood will report directly to Edwards. He said: “We very much look forward to developing our label and authentication offering on an international basis.”

Edwards said the BP acquisition was consistent with the Filtrona philosophy of growing the business organically and into new markets and could lead to further acquisitions overseas.

“As we get more familiar with BP and talk to customers we can see if takes us to investing in facilities or looking at buying other label companies that enable us to grow the business internationally,” he said.

CSP provides secure packaging, identity and security products from eight sites in seven countries and employs more than 330 people.

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