Svpglobal Puts Uk Packaging Group Linpac Up For Sale: sources
03/11/2016 10:07
FRANKFURT, Nov 3 (Reuters) - Buyout group SVPGlobal has put
UK food packaging group Linpac up for sale in a potential 500
million euro ($556 million) deal led by investment bank
Rothschild, several people close to the matter said.
Bidders have until the middle of next week to submit
first-round offers for the maker of plastic boxes, trays and
films for vegetables, meat, cake and frozen food, they said.
Private equity investors with a penchant for packaging
assets such as PAI, Blackstone BX.N , CVC or Lindsay Goldberg
are expected to hand in bids.
Linpac expects to post earnings before interest, taxes,
depreciation and amortisation (EBITDA) of just below 60 million
euros this year, and some of the bids are expected to value the
company at 8 times that, around 480 million euros.
SVPGlobal is hoping for a higher valuation.
Linpac peers like RPC RPC.L , Sonoco 7902.T , Berry
BERY.N , Bemis BMS.N , Sealed Air SEE.N , and Huhtamaki
HUH1V.HE trade at an average multiple of more than 11 times
their expected core earnings.
SVP, Rothschild and the potential bidders declined to
comment or were not immediately available for comment.
SVP took control of the company in late 2014 after buying up
large chunks of debt related to a 2003 takeover of Linpac by
private equity group Montagu for 860 million pounds ($1.1
billion), which had been backed by a 600 million pounds loan.
Linpac supplies over 70 countries worldwide and has 2,500
employees.
($1 = 0.8993 euros)
($1 = 0.8066 pounds)
(Reporting by Arno Schuetze; Editing by Maria Sheahan)
((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))
Keywords: SVPGLOBAL DIVESTITURE/LINPAC