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Apollo pops top on Verallia IPO: Reuters
Posted on Tuesday, 09 April 2019 12:24
Apollo Global Management has smashed open plans to take Verallia public in a deal that could value the French glass bottle maker at more than EUR 4.00 billion, people familiar with the matter told Reuters.
These sources observed that the buyout group has hired Lazard to advise on the flotation and has asked banks to pitch for roles in the coming days.
Should a deal go ahead, it could represent the largest initial public offering (IPO) of a French company this year, with Zephyr, the M&A database published by Bureau van Dijk, showing just one such listing being announced in 2019 to date.
Verallia is seeking a September flotation and is likely to select its coordinators either later this month or in May, according to the insiders.
French IPOs have slowed lately due to market conditions, Reuters observed, with holiday company Club Med’s parent choosing to list in Hong Kong instead of domestically.
The news provider added that state-owned lottery group Francaise des Jeux is also planning a stock market flotation, while logistics company Gefco pulled its potential deal due to uncertainty in the homeland.
Verallia has over 10,000 employees and generated earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 544.00 million on sales of EUR 2.40 billion in 2018, according to its website.
The group, which makes bottles for clients such as champagne giant Dom Perignon and chocolate spreads manufacturer Nutella, is expected to generate post core EBITDA of EUR 550.00 million this year, valuing the company at between 7.0x and 8.0x this in an IPO, the sources noted.
Verallia produced nearly 16.00 billion glass bottles and jars for the wine, spirits, food, and other beverage markets last year and was picked up by Apollo for EUR 2.95 billion in 2015.
The private equity firm, which had USD 69.00 billion in assets under management at 31st December 2018, said it has grown the business into the third-largest of its kind globally.
According to Zephyr, there were two IPOs of glass container makers announced in 2018, these involved Zhejiang Caifu Glass of China and BG Container Glass of Thailand.
© Zephus Ltd