Canadian Buyout Firm Onex Corp to acquire SIG Combibloc Group AG
Onex Corp, a buyout firm of Canada said that it would acquire SIG Combibloc Group AG, a Swiss packaging group for up to $4.43 billion (3.57 billion euros).
The private equity firm said that based on the financial performance of SIG in 2015 and 2016, an additional payment of up to 175 million euros will be payable. The deal is expected to be completed in the first quarter of 2015, and deal is a subject to regulatory approvals.
According to sources, Onex which is the largest listed private equity firm in Canada was leading the bidding for SIG Combibloc.
Switzerland- based SIG has annual earnings before interest, tax, depreciation and amortization of approximately 420 million euros. Globally, the company is the second largest provider of aseptic carton packaging. SIG provides food and beverage producers with a comprehensive product portfolio of aseptic carton closures and sleeves, as well as the filling machines that packagers and producers use with these sleeves.
Worldwide, SIG operates seven production facilities which are based out of Asia Pacific, Europe and South America. SIG is owned by Reynolds Group Holdings Limited which is backed by Graeme Hart, who is the richest man in New Zealand.
A Managing Director in Onex' London office, Nigel Wright said that SIG's management team has successfully proven its ability to enter and grow in emerging markets and at the same time maintaining its standard of excellence in existing markets. He further stated that they look forward to partnering with Rolf Stangl, Chief Executive Officer of SIG and his team to further build upon SIG's impressive track record.
Mr. Stangl said that their commitment to providing customers with a premier aseptic carton packaging system has made SIG a leader within their industry and they are excited about their next phase of growth in partnering with Onex.
Onex has about $20 billion of assets under management, which includes $5.9 billion of Onex capital, in credit securities and private equity. Onex invests its capital directly and as the largest limited partner in each of its Funds. Onex' businesses have assets of $29 billion and it generates annual revenues of $22 billion.