Goodpack shareholders back KKR buyout
Shareholders of Singapore-listed Goodpack, the world largest maker of intermediate bulk containers (IBCs), have approved a S$1.4 billion ($1.1 billion) take-private offer made by KKR.
KKR will pay S$2.50 per share for all outstanding shares in the company through a scheme of arrangement. This represents a 23.2% premium to Goodpack's closing price on March 18, the day before company announced it had been approached by parties in connection with a possible transaction.
According to statement, over 75% of shareholders attending a meeting on Thursday approved the scheme. The company will cease trading on August 27 and the deal is expected to close by September 12.
Goodpack confirmed it was in discussions with KKR on May 20 and then announced an agremment eight days later. Prior to that, Australian supply chain logistics provider Brambles had held preliminary discussions about buying the business but did not progress.
Founded in 1980, Goodpack is engaged in the leasing of IBCs: reusable industrial containers designed for both shipping and storage. The company claims to own and operate the world's largest fleet with 3.2 million units, spread across more than 5,000 delivery and collection points worldwide.
Goodpack's clients include multi-national corporations across diverse sectors including the rubber and tire, food and chemical industries. IBCs are seen as an alternative to disposable packaging such as wooden pallets, paper cartons and single-use steel drums.
The company reported a net profit of $52.1 million for the year ended June 2013, up 10.3% year-on-year. Revenue rose 7.7% to $190.8 million. In the first half of 2014, net profit jumped 9.2% year-on-year to $26.9 million while revenue was up 8.7% at $103 million.
The investment will be made via KKR's second pan-Asian fund, which closed last year at $6 billion. It is the PE firm's largest deal in Singapore since the $2.66 billion carve-out of Agilent Technologies' semiconductor group in 2005, which was done in conjunction with Silver Lake, GIC Private and Temasek Holdings. The company, renamed Avago Technologies, subsequently listed on NASDAQ.
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