Three companies bid to take over IPL Plastics
Some involved in the process are reportedly hopeful that a deal could proceed, despite the current Covid-19 crisis
19 May 2020 | 0
Three private equity firms have made bids for Irish-Canadian firm IPL Plastics, the Sunday Independent reported this weekend.
In 2018, ShelfLife outlined how the company was planning to triple production of 100% recyclable packaging at its site at Little Island, Cork over the next two years.
Now, the three parties understood to be interested in taking over the business – formerly known as One51 and based on Dublin’s Thomas Street – include CapVest led by Seamus Fitzpatrick, Madison Dearborn (known in Ireland for its 2002 acquisition of Jefferson Smurfit Group) and US private equity giant Apollo.
According to market sources, while approaches first took place last year, any acquisition is unlikely to proceed at present, due to the uncertainty generated by the Covid-19 crisis. Nevertheless, some involved in the process are reportedly hopeful that a deal could go ahead.
IPL includes many international names among its list of clients, with the ability to provide packaging options for food processors, dairies, cereal and produce processors, baby nutrition and snack and deli containers.
A take-private deal for the firm would open up an exit route for shareholders, including Larry Goodman, a number of Irish co-ops and some 2,000 small private investors.
Pat Dalton, the company’s CFO, who held the role for eight years, announced his resignation from the board of directors last week to “pursue other business opportunities”.
IPL has since issued a press statement stating that its policy is “to refrain from commenting on market speculation. Furthermore, there is no additional material market update at this time as our recently issued Q1 2020 results, which were released and filed on 13 May 2020, included all relevant and necessary disclosures at this time.”