Acquisition marks the next phase of Zeus’s €35m investment strategy.
Irish global packaging business Zeus has acquired Canadian agriculture supply company Agri-Flex in a move that will position Zeus as one of the world’s largest distributors of agricultural crop packaging products.
This latest addition to Zeus’s agricultural offering enhances its position in this specialist market sector where it has global revenues of €45m.
“With an additional $14m of revenue, we now have the opportunity to leverage further economies of scale, strengthen our competitive offering and introduce new quality products and services to our existing and new customers”
Established in 1995, Agri-Flex is a leading supplier of crop packaging products and horticultural consumables to the entire Canadian agricultural market, with sales exceeding $14m per annum.
In 2021, Zeus acquired Ireland-based Limerick Packaging. The company expects revenues to exceed €370m in 2022.
Zeus has 42 locations worldwide, including Ireland, UK, Germany, Spain, Poland, Eastern Europe, New Zealand, Canada, China and Australia. In 2018, Zeus announced a €27m investment in new premises in Dublin and the UK.
Last year Brian O’Sullivan, the founder and chair of the global packaging business Zeus, was named EY Entrepreneur of the Year 2021.
O’Sullivan founded Zeus in 1998 and has built it into a global packaging force with a turnover of €300 million and a staff of 670 people in 26 countries. As well as picking up the overall award, O’Sullivan also won the International category.
Economies of scale
Zeus manufactures and supply a range of quality silage stretch films, silage covers, baler twines and round bale net wrap that are utilised in the production, handling and conservation of haylage, silage and bedding straw, used on farms in the management of dairy and beef livestock.
“Agri-Flex is an established and well-respected agricultural supplies business within Canada,” said Zeus CEO Keith Ockenden.
“The acquisition not only strengthens and complements our current proposition within the North American market – it also demonstrates our commitment to our existing loyal customer base who have supported Zeus in this region.
“With an additional $14m of revenue, we now have the opportunity to leverage further economies of scale, strengthen our competitive offering and introduce new quality products and services to our existing and new customers.
“We are delighted to welcome 13 additional staff into the Zeus organisation. Their knowledge, understanding and technical expertise will bring valued advice on best practice forage production and conservation. We look forward to working with the Agri-Flex team, delivering our product and service offering to our combined customers.”
Agri-Flex founder Gilles Vezina said: “As a company with a wealth of experience in the global agricultural sector, I am delighted to have agreed this transaction with Zeus. The scale and capabilities of the Zeus organisation will deliver greater value to both our staff and customers. We look forward to joining the Zeus family and developing our business further across Canada.”