Pro-Pac transformational merger to grow business

Company News

by Jessica Ellerm

Pro-Pac (ASX:PPG) has announced a transformational $177.5 million merger with Integrated Packaging Group and a fully underwritten $54.8 million equity raising which will see it become the preeminent leader in the sector. 

IPG is Australia’s largest specialist manufacturer and distributor of flexibles, film and wrap.

The merger will create revenue of $472 million, pro-forma EBITDA of $37.7 million and net profit after tax of $18.4 million in FY18.

The merger will be funded by its $54.8 million non-renounceable entitlement offer of 34 cents per share, as well as through a $60 million vendor placement and $70 million of debt.

The company says the deal will combine two successful industrial packaging manufactures and distributors.

Shares in Pro-Pac (ASX:PPG) are trading up 11.76 per cent higher to 38 cents. 
 

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