TG advises Pro-Pac Packaging in its $177.5 million merger with flexible packager IPG

26 April 2018

News

Thomson Geer partners, David Zwi and Stephen Lyons, acted for ASX-listed Pro-Pac Packaging (PPG) in its $177.5 million merger deal with flexible packager Integrated Packaging Group (IPG).

The merger was funded through a combination of $60 million PPG shares issued to the vendors, a $54.8 million fully underwritten equity raising and $70 million from a new debt facility. The combined business now operates 22 distribution warehouses and manufacturing facilities throughout Australasia.

PPG is striving to be a leader in the industrial and flexible packaging market, worth $2.2 billion, and this merger with IPG “provided many exciting opportunities in the growing Australian flexible packaging market” said PPG CEO, Grant Harrod.

The outcome has so far been good, with revenue for the half-year since the merge up 36% from $116 million to $158 million.