Advent ups investment in IPG

Established in 1992 as a recycling and packaging company, the company later developed the business to provide value-added services in the packaging and recovery industry. IPG now distributes various handling products, including pallets, covers and paper tubes, and manufactures poly products including polyethylene products, polyethylene film and poly bags. It supplies products to customers in Australia and New Zealand as well as Canada and the U.S.

Since Advent's initial investment in 2008, IPG has consolidated its position as the leading supplier in the Australian and New Zealand markets and has seen double digit growth in both sales and Ebitda. It has also made two strategic acquisitions, one of them being Amcor's Kewdale operations.

AVCJ asked about the reasons for further investment in IPG, and Rupert Harrington, Managing Director at Advent, explained, "IPG was backed by [Hastings Fund Mangement] before we invested. Hastings' fund life is coming to a close, so this transaction bought out their shareholding," the logic being that Advent would prefer to have control of IPG rather than give up influence to another major investor.

In terms of plans for the next phase of growth, Harrington said, "We are currently trying to finalize a JV in China and are reviewing some other international JV and acquisition opportunities to grow the business."

In announcing the investment, IPG Managing Director John Cerini said, "Advent's investment strengthens [the company] at a point where we are driving the next phase of IPG's long term strategy. We are confident that with its extensive product range, commitment to excellent service, investment in technical innovation and strong market position, IPG is well positioned to drive exceptional value for both its customers and shareholders."

IPG was previously owned by Hastings Private Equity, which bought 100% of the company for $27.8 million in 2001. In 2008, Advent Private Capital bought out the full stake alongside IPG's management.

This investment was made from The Advent V fund, which is focused on investing in mid-market, buyout and expansion funding opportunities in profitable, predominately Australian businesses with enterprise values of between $10 million and $150 million.

The fund has to date completed seven investments: Locker Group Holdings, Solomon Food Group, Scada Group, UGM Mining Solutions, Integrated Packaging Group, SJ Electrics and Genesis Care. Advent Private Equity has A$450 million in funds under management.

 

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• Topics
• Australasia
• Industrials
• Investments
• Advent Private Capital