The Monterrey office of Baker & McKenzie advised Frantschach Packaging AG, the number one worldwide producer of paper sacks and a leading supplier in flexible packaging and coating, in its acquisition of the sack division of Copamex, the largest industrial sack producer in Mexico and the seventh largest sack producer worldwide. The deal is expected to close by mid February 2004, subject to regulatory approvals.
Frantschach Packaging AG is an Austrian company with sales of about EUR 1.9 billion. With completion of the US $ 59 million acquisition, the company will become a leading industrial sack supplier in North America. Frantschach plans on combining the Copamex sack division with its own sack plant located in the United States in order to increase its market share in the country.
The transaction also includes a seven-year paper supply agreement in which Copamex will supply paper to Frantschach Packaging AG when the company operates the business in Mexico.
The Baker & McKenzie team included José González-Elizondo (Corporate), Adrián Flores-Villarreal (Banking & Finance), Miguel Ferriz-Martinez (Banking & Finance), José Guzman-Quiroga (Corporate), Cynthia Ortega-Arredondo (Corporate), Lucia Todd Lozano (Environmental) and Carlos Leal-Isla-Garza (Labor) all from the Firm’s Monterrey office.
The Copamex sacks business, headquartered in Monterrey will use earnings from the sale in reduction of debt for the company. Copamex has four production sites located in Monterrey, Chihuahua, Puebla and Guadalajara. Estimated sales for the company in 2003 are US $85 million. Fredericks Michael & Co. acted as financial advisor for Copamex.