Sagard Enters Into Exclusive Negotiations With SK Capital To Sell Ipackchem
On 10 December 2020, majority shareholder Sagard announced it has entered into exclusive negotiations to sell Ipackchem, a leading worldwide supplier of high value-added packaging solutions, to SK Capital.
Created in 1987 by Jean-Philippe Morvan as a division of Air Products Group, Ipackchem is a leading global supplier of innovative and specialized barrier packaging solutions. Ipackchem’s leading market positions are further underscored by its commitment to providing sustainable and 100% recyclable plastic barrier packaging through the employment of its differentiated inmould fluorination technology.
Since 2017 and under Sagard’s stewardship, Ipackchem has accelerated its international ambition while maintaining its unique industrial know-how and its strong commitment to sustainability. The company has significantly invested in production capacities in Europe, extended or opened new industrial sites in Brazil, Russia, South-Africa, made a significant acquisition in China and expanded its executive team to support the fast and global development of the Group.
As of today, Ipackchem operates 8 production facilities, addressing its c.500 customers in 35 countries. The company generates c.€120m revenue and employs c. 850 people.
SK Capital's acquisition of Ipackchem, if confirmed, would give its management, who would remain a significant shareholder, the financial, operational, and human resources to pursue its international development, through both organic growth and acquisitions.
Jean‐Philippe Morvan, CEO and founder of Ipackchem, commented: "I have truly enjoyed the four years spent with Sagard, their active sparring partnership and their support to grow our business worldwide. SK Capital’s acquisition is an acknowledgement of the quality of the work completed to date by our team, and will assure the continuity of the Ipackchem Group's strategy to support its customers on a global scale."
Antoine Ernoult‐Dairaine, Saïk Paugam, and Maxime Baudry, Partners at Sagard, concluded: "We are very grateful for the amazing work done by Jean-Philippe Morvan, Antoine Viguié and the impressive executive team, in particular their dedication to growing the business and their commitment to delivering value. Ipackchem is a landmark investment for us, delivering on all value creation levers, organic growth, investments on ESG and human resources and external growth. We deeply thank the team and are confident that the group would benefit from SK Capital for its future development.”
Stephen d’Incelli, Managing Director at SK Capital, commented: "We feel privileged to be partnering with Jean-Philippe and the Ipackchem team to support management in achieving the next phase of the Company’s strategic vision. We see tremendous global organic and inorganic growth opportunities to bolster Ipackchem’s strong existing market positions. We are highly impressed with the Company’s leadership in sustainable barrier packaging products, which aligns well with SK Capital’s strong commitment to sustainability.”
ABOUT SAGARD
Sagard is a French investment fund that provides equity capital to support the development of mid-sized companies led by ambitious management teams. Founded in 2003 with the support of the Desmarais family (Power Corporation of Canada), Sagard’s investor base comprises leading industrial families as well as blue chip institutional investors. Since its inception, Sagard and its Paris-based team of 10 professionals have invested in 34 industrial and service companies in France.
The team that has been working with Ipackchem comprises Antoine Ernoult-Dairaine, Saïk Paugam, Maxime Baudry, Jérôme Triebel and Augustin Perrin.
PARTIES INVOLVED IN THE TRANSACTION ON BEHALF OF SAGARD
- M&A advisor: Natixis Partners (Bruno Stern, Jérôme Vivien)
- Legal advisor: Mayer Brown (Olivier Aubouin, Marine Ollive)
- Financial VDD: PwC (Arnaud Thibésart, Martin Naquet-Radiguet, Louis Terrier)
- Strategic VDD: Kearney (Jérôme Souied, Patrick Rabbat)
- Legal VDD: PwC Société d’Avocats (Isabelle de la Gorce, Youlia Haidous)
- Social VDD: PwC Société d’Avocats (Bernard Borrely, Sophie Desvallées)
- Environmental VDD: ERM (Julien Famy)
- Insurance VDD: Betul Ekici
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