Private equity firm Onex has taken Swiss packaging maker SIG Combibloc Group (SIG) public.
Image: SIG headquarters in Neuhausen, Switzerland. Photo: courtesy of SIG.
SIG, which provides aseptic carton packaging solutions for the food and beverage industry, priced the initial public offering of its ordinary shares on the SIX Swiss Exchange at CHF 11.25 per share.
The market capitalization of SIG at the offering price will be CHF3.6bn ($3.66bn).
The Swiss firm issued 105 million new shares and Onex and its affiliates and several members of SIG management sold 27 million existing shares.
A 30‑day over-allotment option has been granted to the joint global coordinators to purchase up to 19.8 million existing shares from the selling shareholders.
The offering, which is subject to customary closing conditions, is expected to close on 2 October 2018.
The Onex Group has agreed with the underwriters not to dispose any additional SIG ordinary shares until 180 days after the initial day of trading, subject to customary exceptions.
At the offering price, proceeds to the Onex Group will be about $300m, of which the private equity company’s share will be approximately $105m as a limited partner in the fund and as a co-investor.
The Onex Group continues to hold about 182 million shares of SIG resulting in a 57% interest, of which Onex’ share is approximately 64 million shares for a 20% stake.
In May this year, SIG and its owners started investigating various strategic alternatives to support the company’s further development and growth.
SIG provides its customers, international and regional companies, with a range of packaging solutions to address consumer requirements.
In 2017, SIG achieved a turnover of €1.66bn with sales across over 65 countries and more than 5,000 employees.
Recently, the company said that it is the first in the industry to produce all its packs using 100% renewable energy, electricity and gas, at its global production sites.
The company met its 2020 target to source 100% renewable energy and Gold Standard CO2 offset for all non-renewable energy at production facilities two years early.