Nov 20 2010
Bong (STO:BONG) has signed an agreement to buy the remaining 90% of the shares in the Polish company Bong CSK based in Poznan and will thereby become the only shareholder of the company.
Bong CSK is specialized in manufacturing of air bubble bags used by e-commerce and mail order companies for delivery of light-weight products to consumers. Bong CSK has around 65 employees and a turnover of around 5 MEUR per year.
The background of Bong CSK is overprinting and sales of specialty envelopes in the Polish market. In this field Bong CSK has co-operated closely with the Bong Group, e.g., for its supply of white envelopes and by representing Bong in Poland under a license agreement. Over the last couple of years, the company has also invested in building up production of air bubble bags, a product group which has grown quickly on the back of the strong e-commerce trend in Europe. This new focus of the company has lead to a fast-growing business in and outside Poland. “The full integration of Bong CSK into the Bong Group means that we strengthen ourselves as a supplier to e-commerce and mail order fulfillment companies. It is fully in line with our ProPac strategy to grow in selected specialty packaging niches” says Bong’s President and CEO Anders Davidsson. “Furthermore, with this acquisition and after the merger with Hamelin’s envelope division, we have quickly reestablished a strong presence in the Polish envelope market – a growing market with significant potential.” Bong CSK will be consolidated from December 1, 2010 and it is forecasted to have a positive result effect from the first quarter 2011.