Cloud Packaging meets shorter run trend with Toll takeover

By Rory Harrington

- Last updated on GMT

Cloud Packaging Solutions has said the acquisition of Toll Packaging will boost its ability to meet the increased demand for shorter packing runs triggered by the current global economic crisis.

The US-based flexible packaging outfit also said the takeover of Toll would open up new markets and accelerate the firm’s growth. Toll, based in Illinois, is a full service contract packager of food, pharmaceutical and consumer products. Cloud declined to comment on the financial details of the deal.

Shorter runs more important

Cloud president Kevin Fritzmeyer told FoodProductionDaily.com: “Toll offers mid speed packing applications which will help us broaden our markets. The market has decided that shorter runs are more important in the present economic circumstances and there are far less of the fast speed $100 m runs that last for days and days.”

The current financial downturn, characterised by tight credit and smaller orders, means companies are buying just what they need to meeting contracts and seeking to avoid building up large inventory stocks with no certainty they will be able to shift them, Fritzmeyer confirmed.

Growth opportunities

“Toll Packaging’s mid-speed packing expertise complements Cloud’s capabilities and opens up significant growth opportunities for both companies”,​ he said. “The takeover adds product lines such as stand up pouches to Cloud’s portfolio which will also enable us to cover more of the market place.”

The Cloud president said he expected the buyout to increase the combined market share of both companies.

Cloud Packaging Solutions is a subsidiary Cameron Holdings Corporation. It supplies flexible packing to the food, nutrition and pharmaceutical sectors. The company also designs and manufactures high-speed packaging equipment based on continuous motion horizontal form-fill seal technology.

In recent years it has demonstrated its willingness to expand through acquisitions of Span Packaging Services Multi Pack and now Toll.

Toll president Gerry Donley said: “We are excited to become part of Cloud and we believe Cloud will provide the best opportunities for our employees and customers.”

Related topics: Drug Delivery, Mergers and Acquisitions