Merit Packaging sells key assets to Kompass Pakistan in US$11.63M deal

PAKISTAN — Merit Packaging Limited (MPL), a key player in Pakistan’s printing and packaging industry, has approved the sale of major assets including the plant and machinery of its flexible packaging unit and associated goodwill to Kompass Pakistan (Private) Limited for a total consideration of Rs1 billion (US$11.63million).

The transaction was greenlit by shareholders during an Extraordinary General Meeting (EGM) held on June 27, 2025, and was disclosed in a notification to the Pakistan Stock Exchange (PSX) on Monday.

MPL confirmed that Kompass Pakistan submitted the best available offer, following a due diligence and evaluation process.

According to the official notice, “The consent of shareholders be and is hereby accorded to the disposal and sale of the Company’s assets comprising of plant and machinery (flexible packaging unit) and goodwill located at 17-B, Sector 29, Korangi Industrial Township, Karachi for an aggregate sale consideration of Rs1bn.”

The company’s Board of Directors has been authorized to finalize the deal, including signing the sale agreements, receiving payments, and ensuring completion of all legal and regulatory formalities associated with the transaction.

Following the announcement, MPL’s share price rose by Rs0.35 (2.51%) to Rs14.30, indicating positive investor sentiment amid the strategic shift.

Founded in 1980, Merit Packaging is a part of the Lakson Group of Companies and serves a diverse portfolio of sectors including food and beverages, textiles, pharmaceuticals, surgical instruments, and consumer goods.

Its flexible packaging division has been central to its operations, catering to high-volume clients in fast-moving consumer goods (FMCG).

The sale of this core asset signals a potential strategic restructuring or shift in business focus.

While MPL has not publicly disclosed the future direction following this sale, industry analysts speculate the company may be looking to consolidate operations, repay debt, or pivot toward more profitable segments such as offset and folding carton packaging, which have shown resilience in recent quarters.

The buyer, Kompass Pakistan, has not released an official statement, but the acquisition signals its ambitions in expanding flexible packaging capabilities, a sector seeing growing demand amid the rise of e-commerce and packaged foods.

This deal underscores ongoing consolidation in Pakistan’s packaging sector, as firms respond to rising input costs, changing consumer demands, and the need for technological upgrades in a competitive market.

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