Germany-based Weidenhammer Packaging Group (WPG) has agreed to acquire AR Packaging Group's (AR) subsidiaries A&R Carton Lund and Flextrus in Sweden.
Under the deal, WPG will acquire AR's sites at Lund and Halmstad, as well as in Highbridge, UK by end of 2013.
The deal also offers WPG with the production rights to AR Packaging's Cekacan cans, used for packaging food products such as powdered milk, coffee and cocoa.
WPG managing director Ralf Weidenhammer said the acquisition is of strategic importance for the group.
"It will allow us not only to further expand our position on the global packaging market, but at the same time to gain new customers and enter new markets," Weidenhammer added.
The companies expect to complete the transaction by the end of 2013.