Chesapeake Services entered into a definitive agreement to merge with Multi Packaging Solutions Inc (MPS). The merger is subject to customary closing conditions and regulatory approva,  according to a press release report published by CNBC.

The newly combined company will achieve sales of over USD1.4 billion on a pro forma basis. The management believes that the deal will form a significant synergy between the two firms. This will reduce Chesapeake's senior secured leverage. The deal will also decrease the total leverage of MPS, the report said.

Chesapeake is an international producer of consumer packaging. The firm specializes in leaflets, labels, pharmaceutical packaging, beverage packaging, and printed folding cartons. The company has 38 branches in Europe, Asia, and the United States. Chesapeake is a portfolio company of The Carlyle Group, the report stated.

MPS is a company that provides value-added packaging solutions to consumer, multi-media, and healthcare markets. The firm presently has 16 manufacturing facilities in the US and Europe. MPS is a portfolio company of Madison Dearborn Partners LLC, CNBC reported.