KKR in talks to buy Singapore packaging company - report

According to Reuters, negotiations have been underway for nearly a year but have now reached an advanced stage. Goodpack said in a regulatory filing that discussions with various parties about a possible transaction have progressed to talks with just one party. It did not identify the party and warned that there is no guarantee of a deal being consummated.

A DBS research note suggested offer of S$2.50-2.80 per share, which would value Goodpack at up to S$1.57 billion. The company's stock is currently trading at S$2.44, having gained more than 25% so far this year, easily outpacing the benchmark index.

Goodpack announced in March that it had been approached by parties in connection with a possible transaction and appointed Rippledot Capital Advisors to act as financial advisor. Brambles, an Australian supply chain logistics provider, said at the time that it had it held preliminary discussions about buying the business but they did not progress.

The Blackstone Group and The Carlyle Group have also been linked to the asset.

Goodpack was founded in 1980 and claims to have the world's largest fleet of intermediate bulk containers, with more than 2.6 million units, each of which can hold 1.5 tons of goods. It specializes in environmentally friendly containers that represent an alternative to disposable packaging such as wooden pallets, paper cartons and single-use steel drums.

These containers are used in more than 70 countries and 5,000 locations globally. Major clients include tire and automobile manufacturers, chemicals and juice producers and general merchandisers.

Goodpack reported a net profit of $26.9 million for the first half of the 2014 financial year, up 9.2% year-on-year. Revenues grew 8.7% to reach $103 million.

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• Topics
• Buyouts
• Southeast Asia
• Industrials
• Singapore
• Southeast Asia
• KKR
• buyout
• Logistics
• Transportation