The Packaging Group (TPG), headquartered in Lindlar, Germany, is an international manufacturer of primary packaging machines with over 400 employees and four production sites, three of which are in Germany and one in China. As a group, TPG combines the three brands FAWEMA (Engelskirchen; founded in 1920), HDG (Lindlar; founded in 1984) and WOLF (Lich and Hangzhou, China; founded in 1988) under one roof. The group offers tailor-made solutions for packaging dry, free-flowing bulk goods in various types of paper or plastic laminate bags – including flour, sugar, baking mixes, confectionery, animal nutrition and various chemical products. The portfolio includes high-performance horizontal and vertical forming, filling and sealing machines as well as complete packaging lines for industries such as food, pharmaceuticals, chemicals and non-food.
The acquisition
NEXX Capital already had extensive experience in the packaging machinery market through its successful investment in ROVEMA, which was sold in 2017. On this basis, NEXX Capital Beteiligungen V GmbH & Co. KG geschl. InvKG acquired FAWEMA and HDG in 2018.
This was followed in 2019 by the acquisition of packaging specialist WOLF, with production sites in Germany and China, from the founding family and other co-investors.
Investment Rationale
The Packaging Group operates in an attractive, growing market niche that is relatively non-cyclical. The market is fragmented into many providers of different technical solutions and regionalities, which offers strong potential for consolidation. As an attractive platform with an international focus, TPG has its own production facility in China, which creates proximity to dynamic markets and opens up additional scaling and growth potential.
Implementation of the growth concept
With its investment in TPG, NEXX Capital is pursuing the further internationalisation of the business through the global development of sales and technical structures with a focus on attractive growth markets such as USA, the Africa and Asia. At the same time, the product range is being systematically expanded. Furthermore, targeted investments have been made in the corporate structure and second management level in order to strengthen areas such as quality management, operations and aftermarket services. In particular, expertise in the field of paper-based packaging solutions is being continuously expanded and emphasized as a strategic focus area. Innovative machine concepts enable the efficient processing of sustainable paper bags and support customers in their transition to resource-saving packaging.
