Bain abandons Resilux takeover plans

Bain initially announced its intention to acquire all shares in Resilux in early February. In a statement released on 28 March, Resilux acknowledged that the offer would be dropped: "Resilux notes, as set out in Bain Capital's press release of 28 March 2017, that Bain Capital has made the decision not to proceed with a public tender offer for all shares and warrants issued by Resilux because Bain Capital has been notified by the German anti-trust authority that the intended combined acquisition of Resilux and Petainer has not received clearance in Phase I and would need to proceed to a Phase II review, which would make such combined acquisition difficult to pursue in the context of the required timeline for a delisting process of Resilux."

In its own statement, Bain pointed out that this was not a reflection on the attractiveness of Resilux, nor the result of adverse due diligence findings.

Resilux shares had risen sharply following Bain's planned offer in February, reaching a high of €190 (Bain's offer proposed €195 per share, valuing the business at around €380m). The share price tumbled following the 28 March announcement, trading at €162.95 at the time of writing.

Based in Belgium, Resilux produces and sells polyethylene terephthalate (PET) packaging in the form of preforms and bottles. Its products are used to package water, soft drinks and a range of other liquid food products. It generated revenues of €296m in 2016, with a net income of €59.69m.

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• Topics
• Buyouts
• Benelux
• Industrials
• Bain Capital
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• Belgium