KHS USA agrees to buy Scandia Packaging Machinery
9 July 2018
KHS USA has agreed to acquire the assets of US-based Scandia Packaging Machinery for an undisclosed sum
Based in Fairfield of New Jersey, Scandia is specialized in manufacturing system solutions, including cartoners, film overwrappers, multipackers and case packers.
Under the deal, KHS USA will purchase Scandia’s system portfolio and additional equipment, in addition to the firm’s machine expertise and customer base.
As per terms of the deal, Scandia’ production will be shifted to KHS USA’s facility in Sarasota, Florida.
Established in 1918, Scandia develops and manufactures high-speed overwrapping systems, which automatically pack products into distribution and retail packages.
The company provides its products and services to various industries, including pharmaceutical, healthcare, cosmetics, confectionary, food, tobacco, entertainment media and tobacco.
Scandia supplies cartoning systems for the pharmaceutical manufacturers, while overwrappers and bundlers for the healthcare industry.
Overwrappers are used for product protection and also as an indicator of product tampering. Bundlers are provided in five-sided and six-sided configurations for distribution purposes.
Scandia provides labeling, cartoning, and overwrapping systems for the entertainment media, and overwrappers and cartoners for tobacco packaging applications.
In addition, the firm supplies high speed overwrappers and cartoners for the customers in the confectionary industry.
The firm’s solutions can be used in various applications ranging from box overwrappers to multipacks of stick gum, as well as printed foil overwrap of jumbo stick gum packages.
The acquisition will enable KHS USA to enter into various new market segments, including candy, cosmetics and entertainment media.
KHS said that former Scandia president Bill Bronander III will manage business development and sales activities in the future.
KHS USA business unit leader and vice-president Donald Deubel said: “There’s a trend towards smaller single-serve products. In taking over Scandia, an expert in compact packaging machines, we’re developing attractive growth areas in this very segment.
“Scandia has a very good reputation in its fields of expertise. Much of its business is from returning customers.”