Pact Group Holdings Ltd entered into an agreement to acquire Graham Packaging Guangzhou Co. Ltd and Non-Japanese Asian Packaging Operations of Closure Systems Internationals from Reynolds Group Holdings Limited and Closure Systems International Packaging Machinery Inc. for an enterprise value of AUD 142 million.
November 14, 2017
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Pact Group Holdings Ltd (ASX:PGH) entered into an agreement to acquire Graham Packaging Guangzhou Co. Ltd and Non-Japanese Asian Packaging Operations of Closure Systems Internationals from Reynolds Group Holdings Limited and Closure Systems International Packaging Machinery Inc. for an enterprise value of AUD 142 million on November 15, 2017. This transaction includes their closure businesses in China, Philippines, South Korea, India and Nepal and the rigid packaging business in China. The transaction does not include operations in Japan and the plant at Hangzhou. As part of the transaction, Pact Group Holdings Ltd will assume the liabilities of Graham Packaging Guangzhou Co. Ltd, Closure Systems Internationals and related entities. Pact Group Holdings Ltd will also acquire cash of AUD 8.1 million. The consideration will be paid in cash and is subject to certain adjustments. In related deal, Pact Group Holdings Ltd agreed to acquire ECP Industries Limited. The consideration will be funded from a public offering of AUD 176 million. As on December 11, 2017, Pact Group Holdings completed its funding transaction via issuance of 28.64 million shares at AUD 5.28 per new share.
The deal is subject to certain conditions precedent including regulatory approvals in China and Philippines. The deal is expected to close within three months. The deal is expected to be modestly accretive. Tony Damian, Nicole Backhouse, Stacia Super and Lucy Gemmell of Herbert Smith Freehills acted as legal advisor to Reynolds Group Holdings Ltd. and Graham Packaging Guangzhou Co. Ltd and Non-Japanese Asian Packaging Operations of Closure Systems. Simon De Young of Baker & McKenzie acted as legal advisor to Pact Group Holdings Ltd. Armaan Patkar, Kartik Monga and Sruti Baid of AZB & Partners acted as legal advisors to Reynolds Group Holdings Inc.
Pactiv Evergreen Inc. is a manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The Company operates through two segments: Foodservice and Food and Beverage Merchandising. Its Foodservice segment manufactures food containers, drinkware (hot and cold cups and lids), tableware, service ware and other products which make eating on-the-go. Its Food and Beverage Merchandising segment products include cartons for fresh refrigerated beverage products, primarily serving dairy (including plant-based, organic and specialties), juice and other specialty beverage end-markets, clear rigid-display containers, containers for prepared and ready-to-eat food, trays for meat and poultry and egg cartons. It also produces fiber-based liquid packaging board. It supplies products to a diversified mix of companies, including full-service restaurants, quick service restaurants, foodservice distributors, supermarkets, and food processors.
Pact Group Holdings Ltd entered into an agreement to acquire Graham Packaging Guangzhou Co. Ltd and Non-Japanese Asian Packaging Operations of Closure Systems Internationals from Reynolds Group Holdings Limited and Closure Systems International Packaging Machinery Inc. for an enterprise value of AUD 142 million.