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Madison Dearborn picking up IPL Plastics
Posted on Thursday, 30 July 2020 09:21
Chicago-headquartered private equity investor Madison Dearborn has signed on the dotted line to pick up IPL Plastics (IPLP), the Toronto-listed maker of sustainable packaging.
The buyer, which will conduct the deal via its Intelligent Packaging Limited Purchaser vehicle, will pay CAD 10.00 (USD 7.45) per item of stock in the company.
Under these terms, the offer represents a 49.3 per cent premium to IPL’s close of CAD 6.70 on 28th July, the last trading day prior to the transaction being announced.
The deal can be valued at CAD 364.35 million, based on the target’s outstanding share capital.
IPLP’s board has already given its unanimous seal of approval to the approach and recommended that shareholders vote in its favour.
Following completion, IPLP’s largest shareholder, Caisse de dépôt et placement du Québec, will continue to hold a 24.9 per cent stake in the business.
Commenting on the agreement, Rose Hynes, chair of the special committee at the target, said: “We have concluded that this transaction is in the best interests of IPLP and fair to our shareholders.
She added that, following an assessment, “…we are pleased to have reached an agreement that provides immediate and fair value to shareholders and includes significant procedural safeguards that protect minority shareholders.”
A “go-shop” period will now begin, during which IPL will consider what it deems to be superior proposals to the Madison Dearborn offer.
IPLP claims to be a leading provider of sustainable packaging solutions, mainly in the food, consumer, agricultural, logistics and environmental segments.
The company is active in Canada, the US, UK, Ireland, Belgium, China and Mexico and employs around 2,000 people worldwide.
It has been publicly traded on the Toronto Stock Exchange since June 2018.
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