LINPAC Group, the UK-based international plastic packaging manufacturer, has sold five stand-alone, non-core business units to funds managed by Chamonix Private Equity – the London-based private equity firm. The sale completed on 31 December 2010.
The business units concerned are LINPAC Storage Systems, LINPAC Environmental, LINPAC Recycling, Intellident and LINPAC Metal Decorating – previously collectively known as the LINPAC ‘Speciality Businesses'. All are based in the United Kingdom, although Intellident also has a small presence in France and the Netherlands. They are non-core to LINPAC, which will in future generate over 90% of sales from the manufacture, marketing and support of plastic packaging products and returnable transit containers/RTP.
Four of the five operations were previously structured as stand-alone business units of core LINPAC divisions (LINPAC Allibert and LINPAC Packaging) and have been sold as going concerns under asset purchase agreements. The fifth, RFID specialist Intellident Limited – although previously managed within LINPAC Allibert – is a separate legal entity and the company itself was sold.
The consideration is not being disclosed, but together the five business units generated a little under 6% of LINPAC Group revenues, and employed a total of approximately 450 people, or 6% of the former LINPAC workforce. With the exception of Intellident they are now expected to change their names.
Relevant LINPAC personnel have transferred to Chamonix under TUPE regulations, with their employment rights protected, and on substantially the same terms and conditions.
John Darlington, Executive Chairman of LINPAC Group, said: "We have sold five non-core business units, and are using the funds to pay-down debt. Even operations that are non-core require management attention, however, and the disposals have therefore released senior management time for use elsewhere in the business. It also means that we will be able to concentrate investment on our core activities in future."
In brief, the activities of the five Speciality business units are:
- LINPAC Storage Systems: manufacturing and marketing of adjustable pallet racking solutions and shelving systems.
- LINPAC Environmental (including Paxton Agricultural): manufacturing and marketing of plastic litter, recycling and street furniture products for the public and private sectors, as well as a range of agricultural products, including rain water harvesting.
- LINPAC Recycling: recycling of post-use rigid plastic into specified recycled compounds to supplant prime in a wide range of moulding applications and end-markets.
- Intellident Limited (including Ident SAS): systems integration of RFID technology and barcode solutions for libraries, the supply chain and document management.
- LINPAC Metal Decorating: printing in full colour on tinplate and aluminium sheet.
LINPAC Group was advised by Ernst & Young LLP.
Formed in the UK in 1959 as Lincolnshire Packaging, LINPAC Group Limited is a EUR 1.3 billion (£1.1 billion) international market leader in primary food packaging and returnable crates/containers for supply chain management. Comprising four core divisions spanning Europe, the Americas, Asia Pacific and Australasia, the business serves a wide variety of market sectors – from retailing and food production to the public sector, and from automotive manufacturing to fishing. These divisions – LINPAC Packaging, LINPAC Allibert, LINPAC Ropak and LINPAC Viscount – generate more than 90% of their sales through the manufacture, marketing and support of plastic food packaging, rigid plastic shipping containers, packaging film and returnable transit packaging (RTP). In 2010, LINPAC Group was ranked 37th in The Times Top Track 100 list of Britain's biggest private companies.
For more information see: www.linpac.com
Chamonix Private Equity acquires portfolios of direct private equity investments, portfolios of industrial trading divisions/subsidiaries and bank ‘debt-for-equity' portfolios.
Chamonix aims to secure for its vendors both liquidity and also a route for disposing of non-core assets. Deals vary from portfolios of four to fifty individual businesses with values ranging from £30 million to £500 million. Chamonix handles investments throughout Northern Europe, including the UK and Ireland. Current investments include companies involved in a range of business services and industrial manufacturing.