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Integumen going green with Cellulac purchase
Posted on Monday, 16 April 2018 13:09
Skin care, oral health and wound care products manufacturer Integumen is picking up Cellulac in order to switch to biodegradeable packaging instead of single use plastics.
As shareholders in the target will be issued with new securities representing an 84.0 per cent stake in the enlarged group, the purchase will constitute a reverse-takeover.
The all-share transaction can be valued at GBP 9.98 million and will be subject to stockholder approval and other customary closing conditions.
Trading of Integumen’s shares on London’s AIM market was halted following the announcement, which also detailed plans for a GBP 7.50 million equity placing and/or debt funding.
Should the deal go ahead, the buyer will change its name to Cellulac and focus on its environmental impact, using biodegradable plastic ingredients, cosmetics and human grade food supplements.
The Dublin-headquartered firm claims there is a clear demand for these items, and that there was already a GBP 36.00 million offtake agreement in place for the next five years.
Over time, Integumen plans to replace all of its existing cosmetic packaging, and oral care consumer and third-party products with biodegradable plastic materials.
Cellulac encourages the use of this eco-friendly wrapping, as 32.0 per cent of plastic packaging is currently thrown away without being recycled, meaning most of it ends up in the ocean.
Founded in 2009, the business makes biodegradeable plastic packaging components and natural oils, most notably human food grade Omega-3, which is due to have its first full year of production in 2019.
It is headquartered in London but has production facilities in Ireland.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 163 deals targeting plastics product manufacturers announced worldwide since January 2018.
The largest such transaction also involved the purchase of a cosmetics packaging specialist, as Sun Capital Partners sold France-based Albea Services to PAI Partners for USD 1.50 billion in March.
© Zephus Ltd