Apollo- and BPI France-backed Verallia sets IPO price range

Verallia will list its shares on the Euronext regulated market in Paris. Apollo and BPI France – through their joint holding company Horizon Parent Holdings – will continue to control the group. Reports by Le Figaro in May valued the company at more than €4.5bn.

The sale of existing shares by Horizon Parent, the managers and the co-investors, would result in maximum gross proceeds of more than €1bn if the overallotment option was exercised in full. 

The public offering will begin in France on 23 September 2019 and is expected to close on 3 October for international orders. Trading of Verallia shares on the regulated market of Euronext Paris is expected to begin on 4 October.

BPI France, which holds around 10% of the share capital of Horizon Parent, has committed to place an order to the amount of €40m.

BWSA, a Brazilian investment company, has committed to place an order to the tune of €275m.

BNP Paribas, Citigroup and Deutsche Bank are acting as global coordinators, joint lead managers and joint bookrunners. Banco Santander, Barclays, Crédit Agricole Corporate and Investment Bank, Credit Suisse and Societe Generale are acting as joint lead managers and joint bookrunners. Apollo Global Securities and Raiffeisen Centrobank are acting as co-joint lead managers.

The group targets an organic growth of its consolidated revenue of  6-8% in 2019, and to generate an adjusted EBITDA of approximately €610m, according to a statement by the company. The group has also recorded a reduction in its net financial debt and its ratio of external net financial debt to adjusted EBITDA since 2016 (4.2x as of 31 December 2016, compared to 3.1x as of 31 December 2018, and 2.7x expected as of 31 December 2019).

Apollo and BPI France respectively bought stakes of 90% and 10% in Verallia, a division of French construction group Saint Gobain, for an enterprise value of €2.9bn in 2015. To this day, the transaction is the country's largest PE-backed LBO since the financial crisis. At the time, Verallia generated a turnover of €2.4bn, posting EBITDA of around €400m. 

With origins dating back to 1827, Verallia is a producer of glass packaging for food and beverages. It produced nearly 16 billion bottles and glass jars last year for various markets, including wine, spirits, food, beer and soft drinks, according to a statement. The group achieved sales of €2.4bn in 2018 and has an industrial presence in 11 countries. It employs 10,000 people. 

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