Rigid plastic manufacturer Plastipak Packaging has been selected as the successful bidder to acquire the APPE Packaging Division owned by La Seda de Barcelona Group.
The winning bid of €360 million (US$448.9 million) and included a gross up of €65 million of accounts payable that will be transferred with the business, but will be discounted from the bid, and result in an actual consideration for the business of EUR 295 million.
This selection concludes a six month competitive process to sell the APPE Packaging Division in connection with La Seda’s pending insolvency proceedings.
The transaction is subject to the negotiation of binding purchase agreements, regulatory approvals and certain other closing conditions, and is anticipated to close late in the first quarter of 2015.
“We have evaluated the organizational strengths of APPE’s business and have completed a comprehensive analysis of APPE’s sites, machinery, and intellectual property, and as a result, we are confident that this transaction will enable us to better serve our existing and future customers,” says Plastipak’s COO Frank Pollock.
He added that APPE’s talent and technology will allow Plastipak to bring to its valued customers a complete portfolio of solutions to meet their current requirements and tomorrow’s challengess.