IGI to assess strategic options for Nuovaplast

Within the last month, these parties expressed interest in backing the business and made unsolicited offers to acquire Nuovaplast, the sources said, explaining that these approaches propelled IGI to evaluate a potential exit.

No advisers have been mandated, the sources said; however, the private equity firm would be keen to consider further approaches from other potential suitors, one of the sources added.

The sector is undergoing a wave of M&A, one of the sources continued. Recent examples include the sale of SP Group (Plastienvase), a Spain-based manufacturer of plastic packaging for the food sector, bought in February by India's Jindal Poly Films. Italian competitor Garda Plast, backed by sponsor Progressio, is also rumored to be receiving approaches by interested investors, he said.

One of the sources said that Nuovaplast expects to generate EBITDA in the region of EUR 10m-12m this year, with no impact from the Covid-19 pandemic.

Earlier this year, the manufacturer of PET preforms decided to invest EUR 10m in producing R-PET granules manufactured from used and recycled bottle shards, as reported citing a company spokesperson. The investment will be provided to subsidiary 3R, which will use the cash to acquire a new production line capable of producing 15 million tonnes of R-PET annually.

A second production line will be acquired from 2022 to double production to 30 million tonnes annually, the report added. Nuovaplast posted revenues of more than EUR 50m in 2020, one source said, noting that this year its management is confident to reach revenue growth.

Nuovaplast has been owned by PE firm IGI since January 2019. At the time, the fund acquired a 74.7% stake in the company for an undisclosed sum. Banca IFIS, Crédit Agricole and BPER Banca provided financing for the operation.

IGI and Nuovaplast declined to comment.

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