Integrated Packaging Group Pty Ltd (IPG), a company backed by investment firm, Advent Partners, has entered into an agreement to merge with Pro-Pac Limited (ASX: PPG) in a deal valued at AUD177.5 million (expressed on a cash and debt free basis) (the Transaction).   The Advent 5 Fund will become the second largest shareholder in the merged group with a shareholding of ~26%.

The merger of Pro-Pac and IPG will create a leader in the growing flexible manufacturing and distribution segment, a diversified high-quality product mix, sustainable competitive advantage driven by a low-cost and high-volume distribution base and the ability to expand its focus into the lucrative food and agricultural packaging markets.  On a combined basis, FY18F revenue is expected to be AUD472 million, with FY18F EBITDA of AUD37.7 million, and total assets of AUD405.9 million.   With significant future growth opportunities via geographic expansion, product innovation and the combined entity’s unmatched end-to-end packaging service (comprising PPG’s distribution and IPG’s manufacturing capability), the Board of both companies is confident that significant long-term value will be delivered to PPG’s shareholders.   PPG will boost its Board and senior management team with the appointment of Rupert Harrington to the Board as a Non-Executive Director, John Cerini, the current CEO of IPG, as CEO Industrial Manufacturing & Distribution and Patsy Ch’ng, the current CFO of IPG, as Industrial Group Finance Manager.

Rupert Harrington, Executive Chairman of Advent Partners and Non-Executive Director of IPG said “We are pleased with our investment in IPG and believe that the company will continue to thrive under PPG’s ownership. We look forward to working with PPG’s management team and applying our extensive corporate and packaging experience to capitalise on the exciting opportunities in the growing Australian flexibles markets.”

John Cerini, CEO of IPG, said “It has been an absolute pleasure working with the Advent team over the time of their investment in IPG. We have worked collaboratively to ensure our goals have been aligned and together with their high quality strategic guidance we have delivered shareholder value and successful outcomes for all involved. We would like to sincerely thank them for their wise counsel and support over our journey together.”

Symon Vegter, Partner of Advent Partners and Non-Executive Director of IPG said “Advent is proud to have partnered with IPG’s passionate and motivated team. We have grown the business into a market leader in Australia and this is the next step in its evolution. We remain very excited about the company’s future.”

The Transaction is conditional and completion of the transaction is expected to occur on 6 November 2017.

Further details on the transaction are contained in the PPG public announcements.

For any further information regarding the Transaction please contact Rupert Harrington or Symon Vegter on +61 3 9690 9566 or via email ( and ).

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