GPA Global

EBITDA: USD 12 million in 2016
Number of Employees: 170
Sales: USD 54 million in 2016

GPA Global is a one-stop-shop premium packaging and display solutions provider which sources from a wide network of >100 vendors across China.

Offering turnkey solutions from design, engineering, production management and distribution, GPA Global combines product development expertise with low-cost manufacturing achieved through an extensive vendor network.

Founded in 2009, the company has achieved strong sales and EBITDA growth and established a rapidly growing list of customers in the consumer electronics, mobile accessories and games & toys sectors. GPA Global is focused on blue-chip / high-growth SMEs in the US and China, but has also attracted bigger customers with USD 5m+ annual packaging budget.
EQT acquired a co-control stake in GPA Global in 2017 and is currently the single largest shareholder of the company.

To GPA Global.

Market trends and drivers

GPA Global targets a USD 2.7bn global retail packaging market within consumer electronics, mobile accessories and toys & games. The market is expected to grow at 13% annually driven by continued growth and premiumization in the underlying verticals.

The main driver of the market is the increasing variety of consumer electronics products (gadgets such as noise-canceling headphones, Bluetooth speakers, mobile accessories, game and movie collectibles, Internet-of-Things). This, coupled with shorter product life cycle due to higher frequency of new product launches, refreshes, and more frequent switching by consumers, forms a growing underlying demand.

Moreover, packaging is being recognized as one of the key elements to deliver brand image and improve consumer experience, which leads to the ever-growing spending on high quality and premium retail packaging.

Lastly, as the supply chain evolves, the packaging design and manufacturing process is now often outsourced to service providers who can improve the process, excel in design and structure, and reduce cost and inefficiencies.

Investment potential

Through offering innovative solutions in a problem-focused and results-oriented manner, GPA Global has successfully gained a good reputation in the market by creating a new business model in the packaging supply chain. As the market leading player in the targeted verticals, GPA Global has been consistently ranked as the top choice by existing customers, which implies a sticky and solid client base given the general inertia for customers not to change their suppliers.

The business plan is calling for further development of existing clients and markets by unlocking cross-selling, up-selling opportunities and by increasing share of wallet. The company intends to strengthen its presence in the core manufacturing regions within China and across other major markets and become a strategically attractive regional leader.

There are also vast opportunities to expand into new customer verticals such as health & beauty, premium liquor, luxury brands by leveraging the current strong sourcing and supply chain competitive advantage. The Company has plans to pursue synergistic acquisitions to add depth to existing offerings and expand the product scope. The acquisition targets could further enhance GPA Global’s capabilities in design and engineering, customer relationships in specific verticals, expertise in materials and production sourcing, as well as post-manufacturing supply chain services.

Sales and EBITDA development

USD m201520162017
Sales3954 
EBITDA512 

Employee development