SIG Combibloc acquires Scholle IPN for $1.53 bln

Credit: REUTERS/Arnd Wiegmann

Adds detail, background.

ZURICH, Feb 1 (Reuters) - Swiss packaging company SIG Combibloc SIGNC.S said on Tuesday it was acquiring privately held Scholle IPN for an enterprise value of 1.36 billion euros ($1.53 billion) to boost its position in sustainable packaging systems in the United States.

The enterprise value will be funded through a mix of shares, cash and debt refinancing, and the equity value amounts to 1.05 billion euros, the company said in a statement.

It said its preliminary 2021 results confirmed the strength of its aseptic carton business, with core revenue growth of 6.6% and an increase in the adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) margin to 27.7%.

SIG Combibloc, which makes aseptic carton packaging as well as paper straws, said U.S.-based Scholle IPN's growth outlook was consistent with SIG's mid-term guidance of 4-6% revenue growth per year and the acquisition would be accretive to cash flow and earnings per share from the first year after completion.

The transaction will be funded through 33.75 million SIG shares issued from existing authorised capital and 370 million euros in cash, SIG said, adding the existing debt of Scholle IPN would be refinanced at closing. It is expected to close before the end of the third quarter, subject to customary closing conditions.

Scholle IPN, which makes films, fitments and equipment for bag-in-box and pouches, has around 2,100 employees and generated 474 million euros in revenue last year for an adjusted EBITDA of 90 million euros.

"The USA accounts for around 55% of revenue and the acquisition will significantly increase SIG's presence in this large and attractive market," SIG said.

Last month, SIG, which had core revenue of 2.047 billion euros in 2021, acquired Asian milk carton business Evergreen Fresh Carton for $335 million.

($1 = 0.8895 euros)

(Reporting by Silke Koltrowitz Editing by Miranda Murray)

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