Packaging company Pro-Pac has signed a share sale agreement with the Integrated Packaging Group (IPG) worth $117.5m.
Shareholders are to vote at the end of October with the date of completion to be November 6.
Pro-Pac says it is poised to become the preeminent flexible and industrial packaging manufacturer and distributer in Australia following the merger.
The merger will be funded through a combination of $60m Pro-Pac shares issued to the vendors, a $54.8m fully underwriter equity raising $70m from a new debt facility.
Grant Harrod, CEO, Pro-Pac says, “The combination of Pro-Pac and IPG provides many exciting opportunities in the growing Australian flexibles packaging market. Pro-Pac’s expanded capacity to manufacture and distribute high quality products will delight our customer base and provide us with a one-stop-shop offering. Pro-Pac will be a world class manufacturer without geographic constraints as we increase our offerings in key areas such as food service and agriculture film.”
[Related: Pro-Pac signals halt to M&A spree]
Rupert Harrington is to be appointed to the Pro-Pac board as non-executive director from the completion of the merger.
Ahmed Fahour, chairman, Pro-Pac says, “The acquisition of IPG represents a significant milestone in the realisation of Pro-Pac’s vision to become the preeminent flexible and industrial packaging manufacturer and distributor in Australia. The opportunity to combine two complimentary businesses will deliver significant long-term value to Pro-Pac shareholders.”
Pro-Pac Packaging was established in 1987 and offers a comprehensive range of general warehouse packaging to complement its packaging products.
IPG is Australia’s largest specialist manufacturer and distributor of flexibles, film, wrap and associated products with number one or two positions in key end markets. IPG says it operates five world class manufacturing facilities, producing high quality products for its diversified blue-chip customer base.
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