Berlin Packaging grabs the devil
Acquisition of Diablo Valley Packaging the second Berlin Packaging purchase in three months, expanding Berlin’s glass packaging capability in wine and spirits sector.
November 16, 2015
by Canadian Packaging staff
CHICAGO—Leading rigid packaging supplier Berlin Packaging has announced it has acquired the California-based Diablo Valley Packaging, its second acquisition in three months and the sixth since 2010.
The addition of Diablo Valley Packaging’s organization and US $125-million annual sales significantly expands Berlin’s market penetration in California and the Pacific Northwest, strengthens its glass packaging supply chain, and enhances the company’s ability to service customers in the food, beverage, and wine & spirits markets due to Diablo’s specialization in these areas.
Like the acquisition of Ohio-based Vivid Packaging in September, this transaction is part of an initiative to double Berlin’s revenues and earnings by 2017 through both organic growth and strategic acquisitions.
All of Diablo Valley Packaging’s managers and front-line personnel will remain with the company, creating an organization with more than 650 employees, $1-billion in annual sales, double-digit organic growth, and deep expertise in supplying rigid packaging to markets ranging from food and beverage to wine & spirits, personal care, pharmaceutical and nutraceutical, chemical & industrial, automotive care, pet care, and household care.
Customers and suppliers will benefit from:
- Broader geographic coverage with more than 100 sales offices and warehouse locations, bringing Berlin’s packaging consultants and inventory management acumen closer to more customers. Diablo doubles Berlin’s footprint in California and strengthens its presence in 40 other states and provinces;
- Expanded product offerings by bringing together Diablo’s relationships with major glass manufacturers in North America and around the world with Berlin’s 35,000 SKUs and supply chain focused on plastic, glass, and metal containers, closures, and dispensing systems. Customers now have a stronger one-stop shop for all their packaging needs;
- More profit-building services for Diablo customers, including structural and brand design, capital lending, quality consulting, warehousing and logistics. Berlin offers these services to customers at no charge in exchange for new packaging business;
- New growth opportunities for suppliers of both companies, with a combined customer and prospective-customer database numbering more than 50,000 companies. The expanded pool of qualified packaging buyers increases the potential for suppliers to land new business.
“Diablo Valley Packaging and Berlin Packaging have both achieved double-digit growth over the last few years in an industry where low single-digit growth is the norm. As with our company, Diablo’s strong performance is a testament to their creative solutions, strong supply chain, and emphasis on exceptional customer service,” says Berlin chairman and chief executive officer Andrew Berlin. “By combining the strengths of both companies, this acquisition helps us meet our high growth goals and solidifies our position as the industry’s largest, most comprehensive, and most customer-focused rigid packaging supplier.”
Diablo Valley packaging chief executive officer Peter Reno says: “Joining forces with Berlin Packaging aligns Diablo with a nimble innovator in the packaging space while also expanding opportunities for our employees, customers and suppliers.
“This is a case of getting bigger and better, accelerating our growth as well as Berlin’s, and building a stronger company that can serve the widest possible range of packaging needs.”
Diablo majority owner Jeff Jones adds, “I’ve led Diablo for more than 20 years. To get to an even higher level of performance, I knew we needed to find a partner, and Berlin Packaging was clearly the best choice for us. I look forward to seeing the company evolve and reach greater heights in the future.”
The Diablo Valley Packaging transaction closed on November 10. Berlin Packaging previously acquired Pittsburgh-based All-Pak, Chicago-based Continental Packaging Solutions, Connecticut-based Lerman Container, and California-based United States Container Corporation as well as Ohio-based Vivid Packaging.