Apollo prepares bottle maker Verallia for possible 4 billion euros IPO-sources

Vetropack Holding SA

09/04/2019 10:57

(Writes through)
    By Arno Schuetze
    FRANKFURT, April 9 (Reuters) - Buyout group Apollo  APO.N 
is preparing French glass bottle maker Verallia for a stock
market listing later this year, in what could become one of the
largest French initial public offerings of the year, people
close to the matter said. 
    The private equity firm, which is working with Lazard
 LAZ.N  as its IPO advisor, has asked banks to pitch in coming
days for roles in organising the flotation, which could value
Verallia at more than 4 billion euros ($4.5 billion), they said.
    Verallia, which traces its roots back to the Vauxrot
glassworks founded in 1827, counts Pernod Ricard, champagne
house Dom Perignon and chocolate spreads maker Nutella among its
clients.
    So-called global coordinators are expected to be mandated
later this month or in May for the IPO of Saint-Gobain's former
glass bottle unit, in which Apollo bought a controlling stake in
2015. The listing may happen in September or later, they said. 
    Apollo and Lazard declined to comment.
    France has seen few IPOs recently and some deals, such as
that of logistics firm Gefco, have been pulled due to wobbly
market conditions. Tourism group Club Med's parent chose Hong
Kong for its listing.  urn:newsml:reuters.com:*:nR4N1ZS00Q  urn:newsml:reuters.com:*:nL4N1YC1W5
    Among the few other large French companies which may seek a
stock market listing this year is state-owned lottery firm
Francaise des Jeux, a stake in which could be sold under a law
published last year.
    Verallia is expected to post core earnings (EBITDA) of
roughly 550 million euros this year and could be valued at
between 7 and 8 times that in a potential IPO, the sources said.
    Peers such as Vetropack  VET.S , Owens-Illinois  OI.N  or
Vidrala  VID.MC  trade in a wide range of 2.7 to 9.4 times
EBITDA.
    Apollo bought the majority of Verallia in a 2015 deal
valuing the business at 2.95 billion euros. It made 16 billion
glass bottles and jars last year and is the main supplier of
bottles for France's champagne and cognac industries. 
    In 2018, the company - which employs nearly 10,000 people -
generated 544 million euros in adjusted EBITDA on sales of 2.4
billion.
    Earlier this month, Verallia announed the early repayment of
some of its debt, citing solid cash flow generation, pushing its
net debt down to 1.7 billion euros. 
    ($1 = 0.8874 euros)

 (Reporting by Arno Schuetze
Editing by David Holmes)
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))