Merit packaging receives third expression of interest for flexible unit

Merit Packaging Limited, a prominent entity in Pakistan’s printing and packaging sector, has recently attracted significant acquisition interest for its flexible unit. On March 6, 2025, the company received its third Expression of Interest (EOI) for the unit. This follows an earlier EOI submitted on February 27, 2025.

Merit Packaging, established in 1980 as part of the Lakson Group, specialises in manufacturing and selling printing and packaging materials.

The company’s flexible packaging unit provides solutions for the flexible packaging market. As of 2023, this unit consists of one BOBST printing machine currently producing an average capacity of 300 tons/month, two lamination machines both solvent-based and solvent-less, three slitting machines and two Rewinders.

In recent years, Merit Packaging has faced financial challenges. Although the company has achieved operating profits since 2022, substantial finance costs have led to net losses. To address this, Merit Packaging announced plans to sell certain land and buildings, intending to utilise the proceeds to reduce debt and alleviate finance expenses. 

Additionally, the company has been actively expanding its customer base to ensure a steady revenue stream. Notably, in July 2024, Merit Packaging successfully exported a consignment to the United States, marking a significant milestone in its efforts to penetrate international markets.

Sources told Profit that the latest expression of interest comes from Packages Limited, one of the biggest players and conglomerates in the business.

The Packages Group’s interest underscores the potential value and strategic importance of Merit Packaging’s assets and market position. As one of Pakistan’s leading packaging companies, Packages Group’s potential acquisition could lead to synergies and enhanced capabilities within the flexible packaging sector. 

The industry itself is a crucial component of Pakistan’s economy, serving as a major support for both export-oriented and domestic industries. Notably, packaging stands as the fifth-largest sector in Pakistan and the second-largest in South Asia, following India.