IPACKCHEM sale attracts Greif, other packaging strategics and sponsors

Min Ho , Georgina Barnard , Bhavna Kaul and Arezki Yaiche
04 August 2023

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The sale of French packaging group IPACKCHEM Group is advancing, with packaging giant Greif among the bidders interested in acquiring the asset, two sources familiar with the situation told Mergermarket.

Goldman Sachs, which runs the auction process on behalf of private equity vendor SK Capital, is believed to have collected non-binding first-round bids in mid-July, a third source familiar said. A deal is expected to conclude towards the end of August, according to a fourth source familiar.

US-based Greif is closely following the auction, given that it has a division specialising in agriculture packaging that would be complementary to IPACKCHEM's business, two of the sources said. One of them added that Greif, which has a market cap of about USD 3.58bn (EUR 3.23bn), has tabled a "reasonable" offer to seal a deal.

The sellside is primarily targeting US trade buyers who are taking note of the innovation within environmentally-friendly packaging by their European peers, and who can bring such ideas back to their home market, one source said.

An Asian trade buyer is also examining the business, according to a fifth source familiar.

Mauser, a German manufacturer of industrial packaging, could also be a suitor given the complementary nature of each other's products, one source said. It is unclear to this news service whether Mauser is participating in the auction.

The sellside has primarily marketed the business to trade buyers, as is typical in the current uncertain environment for leverage buyouts, one of the cited sources and a sixth source familiar both said. However, one of the other sources said at least two major private equity firms are showing strong interest in the business.

The sellside is pitching the business at an EBITDA of around EUR 60m-EUR 65m, based on projected 2023 figures, three sources said.

Headquartered in Paris, IPACKCHEM is a manufacturer of rigid plastic packaging products (containers, bottles, jerrycans) for crop protection and other key market segments, including pharmaceuticals, animal health, laboratory and flavours & fragrances, according to its website. It operates through 12 production facilities and has more than 1,000 employees.

IPACKCHEM, SK Capital and Greif did not respond to requests for comments.