Onex-backed SIG to float in €1bn IPO

Alessia Argentieri
04 September 2018

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Onex-backed Swiss packaging company SIG Combibloc plans to launch an IPO on the SIX Swiss Exchange in the coming months.

The IPO is expected to consist of a primary offering of newly issued shares targeting proceeds of approximately €1bn, which the company plans to use to cut its debt to a target leverage ratio of 3-3.25x its EBITDA of €480m.

To further increase the company's free float, the IPO may be complemented by an additional offering of existing shares held by current owners, including members of the management team and the majority shareholder, Onex, which is likely to retain a post-IPO shareholding of 50% or more.

In addition, a standard overallotment option is expected to be granted on a number of existing shares.

Following the IPO, the company will appoint a new board of independent directors, chaired by Andreas Umbach and composed of eight members, including two Onex representatives: Nigel Wright and David Mansell.

According to SIG CEO Rolf Stangl, the planned IPO is a natural next step in the company's growth strategy and plan to expand in existing markets and new geographies.

Bank of America Merrill Lynch, Credit Suisse and Goldman Sachs International are acting as joint global coordinators and joint bookrunners for the planned IPO. Barclays, Citigroup, Morgan Stanley and UBS Investment Bank are acting as joint bookrunners, while UniCredit Bank and Vontobel are acting as co-lead managers. Rothschild is acting as independent financial adviser to SIG.

Canadian private equity firm Onex Partners acquired SIG in 2014 from lllinois-based Reynolds Group Holdings, which had bought the company in 2007 for CHF 2.8bn. The deal comprised €3.575bn paid at the closing of the transaction, followed by an additional amount of up to €175m based on SIG's financial performance in 2015/16. Onex deployed $1.25bn in equity from its Onex Partners IV Fund alongside co-investments from LPs, parent company Onex and SIG's management team.

Founded in 1853 and headquartered in Neuhausen, Switzerland, SIG Combibloc is a packaging specialist for the food and beverage industry, primarily for liquids with particulates, including yoghurt, non-carbonated soft drinks and soups. The company generated adjusted EBITDA of €480m from revenues of €1.7bn in the financial year to 30 June 2018. SIG employs around 5,000 people, sells its products to 270 companies worldwide and in 2017 produced approximately 34 billion carton packs.