Gaeltacht packaging company RA Pacáistí Teo (RAP) is eyeing expansion after it was acquired by ProAmpac Holdings, a US based, privately held, manufacturer of flexible plastic and paper packaging.
RAP, which is located in Gaoth Dobhair Business Park, Co Donegal, and is an Údarás na Gaeltachta client company, has enjoyed a recent spell of growth.
Its latest accounts, for the year ended September 30th, 2019, show turnover in the year increased by 8.9 per cent to €31.7 million. Gross profit more than doubled from €700,000 to €1.9 million. Profit after tax was almost €250,000, up from a loss of almost €440,000.
ProAmpac on Monday confirmed the acquisition of RAP from Ludgate Investments with a view to expanding its manufacturing capabilities to produce primary packaging for ready-to-eat and freshly prepared foods.
It said it plans to broaden its sustainable product offering for retail food markets.
RAP will join the ProAmpac brand and will maintain all of its operations at its manufacturing facilities in Gaoth Dobhair in the Donegal Gaeltacht and in London. Terms of the transaction were not disclosed.
RAP currently employs 200 people at its manufacturing facility in the Donegal Gaeltacht, as well as another 40 people in London. It’s understood talks have been held in relation to the possibility of further expansion following the deal.
With the addition of RAP, following extensive discussions over the last number of years, ProAmpac now has 37 manufacturing sites globally, with nearly 4,800 employees supplying more than 5,000 customers in 90 countries.
While RAP will change its name to ProAmpac, there will be minimal changes to the company’s existing policies, procedures and operations.
Graham Williams, chief executive of RAP, said: “Our two companies are highly complementary, with a collaborative working relationship and a common focus on innovation. Together with ProAmpac, we will create stronger solutions for our customers.
“We look forward to expanding our reach in Europe and North America and we are excited to help ProAmpac serve even more customers in the retail market.”
Greg Tucker, CEO of ProAmpac, said RAP was “an excellent addition to the ProAmpac family”.
“We are excited to add the company’s ready-to-eat packaging innovation capabilities to our existing portfolio,” he said.
“With this partnership, we are extending our product reach in food service to now include primary, fresh food packaging to our portfolio, and we will continue to bring innovative ideas and products to a growing customer base.”
Welcoming the acquisition, Anna Ní Ghallachair, chairwoman of the board of Údarás na Gaeltachta, said she extended “a warm Céad Míle Fáilte” to ProAmpac to Ireland and to the Gaeltacht.
“The investment by ProAmpac in the rural Donegal Gaeltacht represents a vote of confidence in the world class standards that have been achieved by RA Pacáistí Teo and is a welcome boost at the start of the New Year,” she said.
“Over the past year we have seen Gaeltacht companies show determination and courage in a particularly challenging environment brought about by the global pandemic and by Brexit.
“This positivity has served them well and will, no doubt, reap considerable benefits for both RAP and ProAmpac into the future.”
