French Pallet Supplier Continues Growth Trajectory: PGS takes over Orth Group

I was impressed when I first met some of the PGS leadership group during a gathering at Jean du Vulliod’s home in Anger, France, early in 2005. And every so often my first impressions are accurate, as PGS continues to grow, and recently the leading French wooden pallet manufacturer and reconditioner announced the takeover of the company Orth and its pallet factory, Jurapal. This is the seventh acquisition for PGS since 2009, ensuring PGS an external growth of 27.6 million euros and a pallet production increase of 1.2 million units a year.

PGS continues its series of acquisitions in order to reinforce its sawing and manufacturing division and to strengthen its market coverage. After having entered in the capital of Debacker, the Belgian pallet leader last summer, PGS group declares having acquired 51% of the company Orth and its factory Jurapal (consolidated turnover: 27.6 million euros) and having signed a firm agreement in order to take the 49% remaining within 2 years. Founded in 1977, Orth has been a key player in the packaging industry for 30 years. The company employs 57 employees (23 of them in Jurapal). This operation allows PGS to reinforce its position as a leader in the pallet manufacturing and reconditioning on the French market.

An Eastern opening

This will allow PGS to consolidate its presence in the East of France and to get closer to the German frontier. PGS Group, which is already at the head of production and reconditioning sites in la Marne, Haute Marne and Moselle, now owns Orth sites in Wasselonne (22000 m²), in Bas Rhin and Jurapal (50000 m²) in Sampans, a city in Jura, where a CAPE line has just been installed to offer a production capacity of 1.2 million pallets a year. The integration of the 2 sites favours PGS’ European ambitions.

“The strengthening of our market coverage in the East of France as well as Orth’s customer base will accelerate our development in Europe, mainly in Germany” said Michael Modugno, founding Vice President of PGS.

Extension of the product range

The PGS range of products will be completed with complementary products such as:

– Presswood pallets, of which Orth is the first national dealer with near 4.5 million euros of sales in 2011. These pallets, under-heat assembled with some wooden rests, are lighter, dry and do not require any ISPM 15 phytosanitary treatment. They are also compatible with any kind of product and they can withstand a considerable weight, just like wooden pallets. As they are suitable for sea transport, they allow a perfect optimization of the containers surface. They also present the advantage of reducing the storage areas as nestable presswood pallets take three times less room than usual pallets.

– Mulch Color is Orth’s green product, and brings PGS a new solution to its wood fiber residual. The colored mulch is available in six colors: natural, brown, red, blue, gold and green. With its attractive effect, Mulch Color can be used as a garden floor covering to reduce the upkeep of green areas and the use of weed killer, or to soften the falls in the playgrounds.

The other products from Orth catalog (wood, plastic, aluminum pallets, folding pallet frames, and containers) will be added to PGS’ range of products and will remain marketed under Orth brand.

About PGS Group

Founded in 1993, PGS Group (Palettes Gestion Services) is the French leader of new and reconditioned wooden pallet and sawn timber production. Thanks to its complete offer and its European network, PGS has become the main logistics partner of the packaging industry. In 2011, with its 700 employees, PGS had a consolidated turnover of 139.2 M€. PGS Group is composed of 6 sawmills, 9 pallet manufacturing sites and 28 reconditioning sites. More information: www.groupepgs.com

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