Linpac has confirmed it has reached an agreement to sell its plastic returnable transit packaging (RTP) subsidiary to a private equity outfit owned by JP Morgan Chase.
The proposed deal would see the UK-based company spin-off its Linpac Allibert RTP business to One Equity Partners – a private equity firm that focuses on acquisitions of companies in mature or midsize markets.
The firm specialises in the design and manufacture of RTP and related products. In 2010 the division generated revenues of approximately £138m – representing around 13% of the Linpac Group, a company spokesman told FoodProductionDaily.com.
“We can confirm that we have reached agreement to sell our Linpac Allibert division to LA Holdings B.V., an acquisition vehicle subsidiary of One Equity Partners (OEP),” he added. “The consideration is not being disclosed.”
Linpac RTP supplies returnable transit packaging products to a range of industries including the food processing and beverage sectors.
RTP includes a raft of transport containers designed for multiple reuse and “have been increasingly replacing packaging products such as wooden, metal and cardboard boxes over the past 20 or 30 years,” said the UK Office of Fair Trading in its assessment last month on whether to green light the transaction.
The body said it did not believe the takeover would affect competition in the UK as sizeable suppliers remained in operation throughout the European Union.
It added that the merger remained conditional on clearance in Austria, Germany, Ireland, Spain and Brazil.
The UK-based company told this publication yesterday “there was no particular timetable” for the deal.
The sell-off was also subject to consultation with Allibert employees and the company promised to make an announcement once all these processes had been concluded.
Last August, Linpac announced a capacity expansion at its UK plant in Cheshire that would allow it to supply its stacking containers throughout Europe to meet growing demand for the products.