Airopack Technology Group AG (ATG) announced it has reached an agreement regarding the acquisition of 50% of the Airolux AG (“Airolux”) joint venture currently owned by Resilux NV (“Resilux”). The acquisition will allow ATG to fully utilise ATG’s Airopack technology and unlock its growth potential, reduce cost price, enhance time to market and improve the organizational footprint.
ATG will pay a cash consideration of €25 million ($28 million) to acquire Resilux’s 50% stake in Airolux. ATG will also repay Resilux’s outstanding shareholder loans and financial debts to Airolux of around €37 million ($39 million). Furthermore, ATG will enter into a Global Preferred Supply Agreement with Resilux under which Resilux will have the first right to supply PET preforms to ATG.
Full ownership of Airolux was a key condition to complete the transaction announced in December in which ATG entered into in a strategic partnership with funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”). ATG will now commence preparation for a general meeting of its shareholders in respect of the requisite approvals for the equity investment from Apollo and the share capital increase.
Commenting on the announcement, Quint Kelders, CEO of ATG, said: “We are extremely pleased to be reaching an agreement with Resilux after months of intense negotiations. This agreement allows us to accelerate on our strategy to become a key supplier to fast-moving consumer good companies. Together with funds managed by Apollo we can further revolutionize the packaging industry by making dispensers cleaner, safer and cheaper.”
ATG have retained Greenhill & Co. and OXEYE Advisors as financial advisers in respect of this transaction, and have also been advised by Citadel International, as well as bureau Brandeis and Heron Legal in respect of Dutch law, Froriep in respect of Swiss law, and Bryan Cave in respect of English law.
Further announcements will be made when appropriate.