IPL Plastics offers sustainable packaging solutions to the customers in the food, consumer, agricultural, logistics and environmental end-markets
Intelligent Packaging Limited Purchaser, a business unit controlled by funds managed by Madison Dearborn Partners (MDP) has agreed to acquire IPL Plastics (IPLP) in a deal valued at around $415m on an equity basis and $734m on an enterprise basis.
IPLP is involved in the supplying of sustainable packaging solutions to the customers in the food, consumer, agricultural, logistics and environmental end-markets.
As per the terms of the arrangement agreement, the company will purchase all of the issued and outstanding common shares of IPLP by paying $7.48 in cash per share, representing a 49% premium to the IPLP closing share price on 28 July 2020.
Caisse de dépôt et placement du Québec (CDPQ) owns the majority shares in IPLP. Its shares are effectively to be rolled over at an implied value per share equal to the purchase price.
Upon completion of the deal, the MDP Funds will become the controlling shareholder of IPLP while CDPQ’s wholly-owned subsidiary will hold a minority equity interest of around 24.9%.
The IPLP board created the independent Special Committee in response to diverse confidential enquiries and unsolicited preliminary proposals from North American and European private equity sponsors who preferred to explore a potential privatisation transaction involving the company. Rose Hynes has been selected as the chair of the Special Committee.
Hynes said: “We have concluded that this transaction is in the best interests of IPLP and fair to our shareholders. With a view to maximising shareholder value, we conducted a thorough assessment of MDP’s proposal, as well as other alternatives reasonably available to the company, including the status quo.”
IPLP operates in Canada, the US, the UK and Ireland, Belgium, China and Mexico
With around 2,000 employees and corporate offices in Montreal and Dublin, IPLP conducts operations in Canada, the US, the UK and Ireland, Belgium, China and Mexico.
The company’s brands include IPL Loomans that offers custom-made injection moulds to the customers in the food, beverage and personal care sectors.
IPL Macro offers returnable and reusable bulk container solutions for the agriculture, automotive, food processing, retail and industrial markets.
IPL MacroTrac offers durable and sustainable injection-moulded plastic flooring and roadway mats to cover any terrain.
BMO Capital Markets is serving as an exclusive financial advisor to IPLP while Stikeman Elliott is acting as a legal advisor to the company. McCarthy Tétrault is serving as an independent legal advisor to the Special Committee.
Evercore is serving as financial advisor to the MDP Funds while Kirkland & Ellis is acting as legal advisor and McMillan is serving as Canadian legal advisor to the MDP Funds.
Recently, Technimark purchased Tool & Plastic Industries, a supplier of injection moulded products for the medical device, pharmaceutical and consumer product sectors.