Private equity firm Sun Capital Partners has announced merging of five of its plastic packaging portfolio companies to form a single company Exopack Holdings, which will be based in Luxembourg.

The combined revenue of all the merging companies, which have operations in Europe and the Middle East, including Exopack, Kobusch, Britton, Paragon and Paccor was around $2.5bn in 2012.

According to Exopack, the deal is expected to generate annual savings of around $65m based on back office, manufacturing as well as global procurement operations of the company.

In 2012, the packaging businesses posted around $255m in total earnings before interest, taxes, depreciation, and amortization (EBITDA), which post cost savings would transform to around $319m.

Exopack was acquired by Sun Capital in 2005, while the other four companies were bought over the last three years.