GEF - Greif Plans to Acquire IPACKCHEM | Benzinga
DELAWARE, Ohio, Oct. 31, 2023 (GLOBE NEWSWIRE) --
Highlights
- IPACKCHEM is a global leader in premium barrier and non-barrier jerrycans and small plastic containers
- Platform investment supports future growth in EMEA and APAC, with unique barrier technology, best-in-class facilities across five continents, and strong technical and operational management
- Favorable exposure to secular growth markets in agriculture, specialty chemicals, flavor & fragrances, and pharmaceutical & medical diagnostics
- Financial profile is immediately accretive to EBITDA margins and free cash flow
- Compelling value at 9.4x last twelve months adjusted EBITDA of $57 million and 8.4x synergized1 EBITDA of $64 million for a global leader with nearly 25% EBITDA margins and 65% cash conversion
- Planned acquisition is fully aligned with Greif's enterprise strategy of growing into margin-accretive, resin-based products with strong circularity characteristics serving multiple end markets
Note: all financials translated based on 1.05/1.00 EUR to USD exchange rate as of October 18, 2023
(1) Estimated synergies of $7 million represent Greif low-end estimate for synergy capture within 48 months of planned ownership based on information available as of October 31, 2023; upside potential will be refined throughout that period and updates will be communicated as synergies are realized.
Transaction Overview
Greif, Inc. (NYSE:GEF, GEF.B)), a global leader in industrial packaging products and services, announced today that it has entered into exclusive negotiations to acquire I PACKCHEM Group SAS, a global leader in premium barrier and non-barrier jerrycans and small plastic containers, from an affiliate of SK Capital Partners, in a cash transaction valued at $538 million. The planned transaction would be funded through available capacity in Greif's existing credit facilities and would be expected to close by the end of the second quarter of Greif's 2024 fiscal year, subject to prior completion of the information-consultation processes under French law and closing conditions, including regulatory clearances.
IPACKCHEM is a global market leader in the production of high performance plastic packaging. Headquartered in Paris, France, the IPACKCHEM footprint includes over 1,400 employees in 13 operating facilities located in eight countries. For the last twelve months ended September 30, 2023, IPACKCHEM generated sales of approximately $235 million and adjusted EBITDA of approximately $57 million.
A presentation containing additional information on the planned acquisition is available for review at the Greif investor relations website at https://investor.greif.com/.
"The IPACKCHEM portfolio is in perfect alignment with Greif's strategic growth aspirations in jerrycans and other small plastics," said Greif's ...