News

Chesapeake has tightened its stranglehold on package supply by agreeing to buy First Carton Group

Chesapeake has tightened its stranglehold on package supply by agreeing to buy First Carton Group a week after snapping up Glasgow’s Lithoprint.


First Carton has 810 staff and makes cartons for food and drink from six factories in Edinburgh, Birmingham, Congleton in Cheshire and three German plants. Its turnover is £75m.


Chesapeake said there would be no changes to the management team, headed by chief executive Alan Johnstone.


A First Carton spokesman said “it’s business as usual,” but couldn’t say for how long.


Johnstone, a former managing director of The Observer, led a £40m management buy-in at Lawson Mardon plants over two years ago to form First Carton.


Field Group chief executive Keith Gilchrist said the deal reinforced US-based Chesapeake’s position as a leading packaging supplier in Europe.


“This shows its commitment to the European food and drinks sector,” he said. “It will create an enlarged business with improved asset utilisation, greater scale and the scope to service customers on a pan-European basis.”


Gilchrist said the hunt for more acquisitions was still on “to strengthen our total service”.


Last week Chesapeake bought Glasgow’s 112-staff, 10m-turnover label and print firm Lithoprint.


It bought Field Group last March as part of its European speciality packaging division, adding Boxmore International this February.


Story by Jez Abbott