ENSO, the Iberian food packaging manufacturer owned by GED Capital, completes its fourth acquisition with the purchase of the Portuguese company Vertical Bag

ENSO, a leading food packaging manufacturer in the Iberian Peninsula, owned by the private equity firm GED Capital, has announced the acquisition of 100% of Vertical Bag, Lda (“Vertical Bag”).

Founded in 2008 and located in Lordelo-Guimarães (Portugal), Vertical Bag is a pioneering company specialising in the manufacture of flexible bags for the format known as “Bag-in-Box”. In 2022, it had a turnover of €2.5 million with formats ranging from 3L to 20L, for food markets, in countries such as Portugal, Spain, Italy and the Czech Republic.

“Bag-in-Box” is a packaging solution that provides wide environmental advantages, as it reduces the carbon footprint, optimizes transportation and storage, and provides high conservation properties of the content, which allows diversification of the applications range. The trend in the use of this solution is highly positive and very significant growth is expected in the coming years through the different markets where Vertical Bag is present.

With the incorporation of Vertical Bag, ENSO enters new strategic markets and positions itself as a global packaging group with 3 business lines:
– PET containers
– Caps and closures
– Bag-in-Box

In January 2018, GED Capital acquired a majority stake in ENSO. Located in Andújar (Jaén), ENSO is the Spanish leader in the production of customized PET containers for the food sector, excluding beverages. Its containers, manufactured with blow moulding technology, are mainly aimed at the edible oil sector (narrow-neck containers), and honey, coffee, spices, cookies and pickles (wide-neck containers). ENSO’s successful business model is based on the production of short batches of high-quality products.

To meet growing customer demands for environmentally friendly solutions, ENSO has developed an innovative line of eco-sustainable packaging with up to 30% less plastic and 100% recyclable materials. In 2020 the company adapted its facilities and production processes to manufacture bottles made from recycled materials (rPET). ENSO defends a solid business model with a strong commitment to sustainability. For this reason, the company has completed the installation of photovoltaic panels with a capacity of approximately 4GWp, which represents 20% of the total energy demand for both the companies in Jaen and in Portugal.

Since GED invested in the company in January 2018, ENSO’s sales have nearly tripled from €22 million to a projected €60 million by 2023, thanks to both organic and inorganic growth. ENSO has made four acquisitions: Envases Plásticos Alimenticios Iberia and Plásticos Jaén in Spain, and Espaçoplas and Vertical Bag in Portugal.

ENSO’s CEO, Jose Óscar Martínez, commented: “The acquisition represents a unique opportunity to enter new markets where a high-growth packaging format is expected. This allows us to provide sustainable and quality solutions to any of our customers’ requirements.”

Enrique Centelles Satrústegui, managing partner of GED, stated: “ENSO has proven to be a unique platform for consolidation in the food packaging sector. Together with its management team, we have made 4 strategic acquisitions, a classic example of the buy &build strategy where GED has outstanding experience.”

Transaction advisors:
Acquirers: Telles and Baker & McKenzie (Legal), Telles and Baker Tilly (Due Diligence)