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Pro-Pac launches $55m capital raising

Wednesday, 11 October 2017
By Print21

Pro-Pac Packaging

ASX-listed Pro-Pac, headed by former Australia Post boss Ahmed Fahour, has rolled out a $54.8 million capital raising to partially fund its $177 million acquisition of flexible packager Integrated Packaging Group (IPG).

Existing shareholders are being offered the opportunity to acquire fully paid ordinary shares on the basis of two new shares for every three existing shares at an issue price of 34 cents a share, Pro-Pac told the ASX.

The acquisition of IPG, announced last month, is being funded by the capital raising – fully underwritten by Bell Potter Securities –  as well as a combination of $60 million Pro-Pac shares issued to the vendors and $70 million from a new debt facility, the company said.

“The acquisition of IPG represents a significant milestone in the realization of Pro-Pac’s vision to become the preeminent flexible and industrial packaging manufacturer and distributor in Australia,” said Fahour, executive chairman, Pro-Pac Packaging. “The opportunity to combine two very complementary businesses will deliver significant long-term value to Pro-Pac shareholders.”

The combined business will have annual sales of about $450 million.

Pro-Pac has distribution facilities in Sydney, Melbourne, Brisbane, Perth and Adelaide as well as six manufacturing sites, providing flexible and rigid packaging solutions.

Integrated Packaging Group, formerly owned by private equity firm Advent Partners, operates five manufacturing facilities across Australia and New Zealand, providing a wide range of stretch plastic film used to wrap consumer goods, building products and agricultural products.

The new entity will operate 22 distribution warehouses and manufacturing facilities in Australasia.




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