Onex Corp. will buy SIG Combibloc Group, the Switzerland-based manufacturer of aseptic carton packaging and plastics closures from New Zealand's Rank Group in a deal announced Nov. 24.
Private equity firm Onex, based in Toronto, has agreed to pay up to 3.75 billion euros ($4.66 billion). When the deal closes, Rank will receive 3.575 billion euros ($4.44 billion) with another 175 million euros ($217 million) will be payable based on the financial performance of SIG in 2015 and 2016. Onex said it expects the transaction to close in the first quarter of 2015, subject to regulatory approvals.
SIG says it is the second largest provider of aseptic cartons globally. It operates seven facilities globally, based in Europe, South America and Asia Pacific, where the company makes packaging and closures, as well as filling machines. The group had sales of 1.68 billion euros ($) in 2013, and has 5,200 employees.
“SIG's management team has successfully proven its ability to enter and grow in new markets, while maintaining its standard of excellence in existing markets,” said Nigel Wright, a managing director in Onex' London office, in a news release. “We look forward to partnering with Rolf Stangl [CEO of SIG] and his team to further build upon SIG's impressive track record and continue its growth.”
Stangl said: “Our commitment to providing customers with a premier aseptic carton packaging system has made SIG a leader within our industry. We are excited about our next phase of growth in partnering with Onex.”
The acquisition agreement also involves an equity investment of approximately $1.25 billion by Onex Partners IV, and co-investors, including Onex, and SIG's management team.
Onex funds own other companies in the plastics sector, including machinery firms Krauss-Maffei and Davis-Standard.
SIG is currently part of Rank's Reynolds Group Holdings, which also owns other plastics packaging companies including Closure Systems International, which has been reported to be up for sale.