SIG have today announced that it has entered into an agreement to acquire Pactiv Evergreen Inc., Asia Pacific Fresh operations (“Evergreen Asia”) for an enterprise value of $335 million.
For the twelve months to 31 December 2021, Evergreen Asia is expected to record revenue of around $160 million and adjusted EBITDA of around $28 million. On a proforma basis, the acquisition will represent approximately 7% of Group revenue. The transaction is expected to close in the second or third quarter of 2022, subject to customary closing conditions, and will be debt financed. The acquisition will be accretive to cash flow and earnings per share from year one.
The acquisition will enable SIG to increase its share of wallet with existing customers and to access a new customer base. SIG plans to use its local R&D presence and innovation capabilities as well as its marketing expertise to introduce more innovative packaging formats in the fresh dairy market.
The complementary nature of Evergreen Asia’s operations with those of SIG is expected to generate attractive revenue and cost synergies. As part of the transaction, SIG will be entering into a new coated carton board purchase agreement with Pactiv Evergreen Inc.