ELOPAK ASA October 12, 2021 Elopak Group ("Elopak ", ticker "ELO") has today entered into an agreement to acquire 100% of the share capital inNaturepak Beverage Packaging Co Ltd ("Naturepak Beverage") fromGulf Industrial Group Company Plc andEvergreen Packaging International LLC (Evergreen Packaging ), a wholly-owned subsidiary ofPactiv Evergreen Inc. "Pactiv Evergreen ," ticker "PTVE") - Naturepak Beverage is the leading provider of fresh liquid carton and packaging systems in the MENA region with local production facilities inMorocco andSaudi Arabia - The acquisition provides a strategic customer base in the fresh gable top segment, primarily inMorocco in fresh dairy, and gives access to growth markets in an attractive region with structural tailwinds through population growth and urbanization - Naturepak Beverage andElopak are highly complementary:Elopak can leverage its fresh Pure-Pak® carton portfolio and utilize its technical expertise to drive further growth across products, segments and markets - Accretive on growth, margins and earnings per share, the transaction adds scale in strategic geographies and reinforcesElopak's stated focus on profitable growth; leverage will increase in the short term butElopak remains committed to its leverage targets and dividend policy communicated in its mid-term financial guidanceElopak Group has today signed a Share Purchase Agreement to acquire 100% of Naturepak Beverage fromGulf Industrial Group Company Plc andEvergreen Packaging International LLC (Evergreen Packaging ), a wholly-owned subsidiary ofPactiv Evergreen Inc. The acquisition will reinforceElopak's position in the region, is a part of the execution ofElopak's strategy and is in line with our financial guiding on revenue growth to selectively pursue M&A opportunities. The transaction represents an important milestone in Management's ambitions to target 2-3% organic revenue growth, deliver inorganic opportunities and grow its global footprint by entering new geographies. Naturepak Beverage, which will be rebranded and incorporated under theElopak name, will offer its client base improved access to a wider fresh and aseptic product portfolio and innovative, sustainable solutions. Naturepak Beverage supply customers inMiddle East andAfrica from manufacturing plants inMorocco andSaudi Arabia , both which will be integrated into Elopaks's global production network. Thomas Körmendi, Chief Executive Officer ofElopak , said: "This transaction represents an important part of the growth ambitions we outlined to our shareholders during our IPO this year. I am proud to take ownership of what we deem to be one of the highest quality assets in the region and to welcome the employees of Naturepak Beverage to theElopak family. By establishing a presence inMorocco andSaudi Arabia we can access important growth markets and deliverElopak's brand portfolio to key local and international players. The transaction represents our strong commitment to growth in theMiddle East andAfrica ".Hilal Al-Banawi , Vice Chairman of the Board ofGulf Industrial Group , said: "We are delighted to have reached an agreement to sell Naturepak Beverage toElopak , a company we highly respect for its enterprising heritage in the field of beverage packaging. We have full confidence inElopak to continue to build on the close relations we have established with our customers to deliver the innovative products we helped pioneer in the region. Under our stewardship and the dedication of our valued employees, Naturepak Beverage has grown to be the supplier of choice for gable top packaging in the MEA region".Mike King , Chief Executive Officer ofPactiv Evergreen, Inc , said: "Pactiv Evergreen is pleased to announce this agreement with our valued partners atElopak . The completion of this transaction will positionPactiv Evergreen to focus on our growth inNorth America where we are established as a leading manufacturer of fresh food and beverage packaging, servicing many of the world's most beloved brands". Strongly positioned in attractive growth markets Naturepak Beverage, provides filling systems to customers in the MEA region where it is present in 16 countries. Its offering consists of fresh gable-top cartons and filling machines, accompanied by technical support and service. Naturepak Beverage has an annual production capacity of 2.7 billion cartons across various product sizes. Its customers are global blue chip FMCG players and strong regional champions. In 2020, Naturepak Beverage's sales were approximately$40 million (EUR35 million ) and it employed approximately 140 people. StrengthensElopak's financial profileElopak will acquire Naturepak Beverage for a cash free debt free purchase price of$96 million (EUR83 million ). The transaction will be funded through a combination of available cash balances and credit facilities. The transaction is expected to be accretive toElopak's growth, margins and earnings per share upon completion. The completion of the transaction is subject to a number of closing conditions, includingSaudi Arabia andMorocco antitrust approvals. Both companies will continue to operate on a business-as-usual basis until closing. AdvisorsBNP Paribas acted as exclusive financial advisor toElopak ASA .Norton Rose Fulbright , the Law Firm ofSalah Al-Hejailan andFreshfields LLP acted as legal advisors. deNovoCorporate Advisors acted as exclusive financial advisor to Naturepak Beverage and White & Case acted as legal advisors. Webcast and conference call The company will host a webcast at09:00 a.m. CET on Wednesday 13 October. Please join the webcast through onElopak's website: https://www.elopak.com/reports-presentations/ The slide presentation will be available on our website from08:30 a.m. CET on 13 October. Conference call details: Participants dial-in numbers: PIN Code for all countries: 664275 NO: +47-21-956342UK : +44-203-7696819 US: +1 646-787-0157 SE: +46-4-0682-0620 DK: +45-7-8768490 For more international number, please contact us on contact@livehouseeurope.com. AboutElopak Elopak is a leading global supplier of carton packaging and filling equipment. We use renewable, recyclable and sustainably sourced materials to provide innovative packaging solutions. Our iconic Pure-Pak® cartons are designed with the environment, safety and convenience front of mind. They offer a natural and convenient alternative to plastic bottles and fit within a low carbon circular economy. Founded in 1957,Elopak ASA is headquartered inOslo, Norway and listed on theOslo Stock Exchange . As of year-end 2020,Elopak employed ca. 2,600 people worldwide and was present in more than 70 countries. In 2020,Elopak produced 14 billion carton packs and generatedEUR909 million in revenue. For more information, visit www.elopak.com For further information: Visit our company website (http://www.elopak.com) or contact investor relations: Contact person:Thomas Askeland +47 992 34 557 Director Investor RelationsElopak ASA Karenslyst Allé 53,Oslo, Norway Thomas.Askeland@elopak.com The information included in this announcement is defined as inside information pursuant to article 7 of the Market Abuse Regulation, and is publicly disclosed in accordance with article 17 of the Market Abuse Regulation and section 5-12 of the Norwegian Securities Trading Act. The announcement is made by the contact person.
Click here for more information
© Oslo Bors ASA, source
