Testimonial by Eamon Farrell on sale of Irish Flexible Packaging to ProAmpac

Testimonial by Eamon Farrell

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On the 31st of October 2021, Irish Flexible Packaging was acquired by global flexible food packaging business ProAmpac. ProAmpac is owned by Pritzker Private Capital who partner with leading companies.

I, Eamon Farrell, co-founded Irish Flexible Packaging in 1991 in Carnew Wicklow, Ireland and as CEO I grew the company to become the #1 aluminum foil and wax paper flexible food packaging company in Ireland and the UK. In February 2019 I brought in IFP Investment Limited chaired by Barry O’Brien as an Investor to assist with growth, strategy and succession given their team of former CEOs and CFOs.

The business continues to expand especially as it is the key sustainable packaging supplier to iconic Irish food products such as Kerrygold Butter and Brennans Bread. But then Covid hit and whilst Irish Flexible Packaging revenues were not negatively impacted by the pandemic, as our core dairy and bakery customers maintained their consumer sales, I was forced to reevaluate the merits of maintaining a small indigenous independent business in rural Ireland in a globalized world. The key issue that the business began to struggle with was the increase in costs and supply of raw materials such as aluminum and paper.

Simultaneously a large reputable multinational called ProAmpac made an enquiry to partner with us. ProAmpac had acquired two other similar sized flexible food packaging businesses in Ireland in 2021, and hence I began to assess the pros and cons of such a partnership.

The decision by me and my fellow shareholder of IFP Investments Limited was to partner with ProAmpac to secure the best prospects for the company going forward for all the stakeholders including my staff, customers, suppliers and shareholders.

To make this decision, I had to answer and satisfy myself that ProAmpac offered a more advantageous way forward when addressing the following questions.

·???????What is the best way forward to secure the best prospects for our staff?

·???????What will be best for our customers, many who supply globally? Will they continue to order their essential flexible packaging from a company that has one single 35,000 sq.ft. factory in Wicklow Ireland?

·???????Will we be able to overcome the ever increasing cost in raw materials, transport, energy and human resources and sale pricing pressure from multinational competitors to remain profitable?

·???????Can we manage the ever changing food packaging product requirements in this age of sustainability and increased regulation to meet our customer demands driven by consumers environmental concerns?

·???????How can we best forecast and develop future flexible food packaging solutions? Will we be able to afford the necessary R&D and infrastructure to meet these changing requirements?

·???????Given the tight labour market with increasing wage expectations and employees desire for advancement, how will we retain key personal?

·???????Will ProAmpac invest in the existing Irish Flexible Packaging plant and continue to expand the business?

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All the above were critical questions when I assessed the best way forward to secure the future of the business. They were all answered positively if Irish Flexible Packaging merged with ProAmpac as a truly global company with the necessary expertise, reputation, financial strength and buying power to compete in a globalized world.

Since making the decision to partner with ProAmpac, the reality has proven that it was the correct decision and Irish Flexible Packaging is in safe hands under ProAmpac as it goes from strength to strength.

Eamon Farrell