Industry News

Rako/Baumgarten/X-Label – Global label player through merger

The merger of Rako Group, Baumgarten and X-Label has been created the world’s third largest label converting group

The merger of Rako Group, Baumgarten and X-Label has been created the world’s third largest label converting group. It will have a value of over half a billion dollars, 3000 employees and 30 production facilities across the globe, with a total of 180 narrow web press lines. The name of the group will be released at the closing of the transaction at the end of October.

Geographically, the group spans key regions across the globe. Baumgarten has plants throughout Latin America; and while X-Label and Rako are headquartered in Germany, X-Label is particularly strong in Russia and Eastern Europe – with a new plant in Romania currently under construction – and Rako has become a major player in China with two plants open and another under construction.

The merger is under review by German Cartel Office and closing of the transaction is expected later this year. Full integration of the companies is currently at the planning stage and the full roll-out is expected to last through 2017. Until then, all three companies will operate within their current legal structures.

Armin Karl Geiger

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