By Ryan Dezember
Shares of an Ohio firm that makes the paper filler that prevents items from jostling around in delivery boxes have risen more than 25% after it said Amazon.com is taking a stake in the firm.
Ranpack Holdings said in a securities filing that the e-commerce giant has agreed to buy a warrant for 18.7 million shares of the packaging firm, at a per-share exercise price of about $6.83. The warrant shares amount to about 17% of Ranpack's shares outstanding, according to a filing.
About 10% of the warrant shares Amazon agreed to buy vested when the deal was struck, said Ranpack, which also makes machines that pack boxes with its materials.
The deal is an example of big consumer companies replacing plastic packaging with more paper to bolster their sustainability bona fides. Paper packaging is recycled at a much higher rate than plastics, and otherwise quickly biodegrades.
Besides replacing plastic pillows with paper filler in its delivery boxes, Amazon has launched initiatives to better fit cartons and envelopes to the products they contain in order to cut down on waste.
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January 29, 2025 13:03 ET (18:03 GMT)
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