US-based private-equity firm Kohlberg Kravis Roberts enters advanced talks to buy Singapore-based bulk containers group Goodpack after almost a year of discussions on possible deal, according to Reuters, citing individuals familiar with the matter
May 20, 2014
– US buyout specialist KKR & Co LP (NYSE:KKR) has entered advanced talks to buy Singaporean bulk containers group Goodpack Ltd (SGX:G05) after almost a year of discussions on a possibledeal, Reuters reported today, quoting people in the know.
According to a research note from DBS Group of last week, cited by Reuters, an offer for Goodpack, which is 32% owned by founder David Lam, could value the target at as much as SGD1.57bn (USD1.26bn/EUR916m), with a price per share expected in the range SGD2.50-2.80. The note said that, through a deal, KKR would secure a niche operation, boasting unique global network and supply chain management.
The insiders told the news agency that the buyer was working with at least two investment banks to secure debt financing for the acquisition, with the package seen to be worth some USD600m.
Reuters reported on 3 April, quoting sources, that private equity firms Blackstone Group LP (NYSE:BX) and Carlyle Group LP (NASDAQ:CG) met with Goodpack Ltd (SGX:G05) to discuss the possibility of making an offer for the company, after Goodpack cancelled negotiations with Australian suitor Brambles Ltd (ASX:BXB) a few weeks earlier,
Goodpack, which makes environmentally friendly intermediate bulk containers (IBCs), announced on 19 March it was holding talks with unnamed suitors, but a deal was not guaranteed to emerge. Rippledot Capital was mandated to help with the process.
Goodpack has current market capitalisation of some SGD1.38bn.