Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Hart's Rank Group hires bankers to run packaging sales: FT

Hart's Rank Group hires investment banks to run packaging sales: report

By Paul McBeth

Sept. 9 (BusinessDesk) - New Zealand billionaire Graeme Hart's Rank Group has hired three investment banks to run separate sales of three units in his global packaging empire in what could generate some US$9 billion, according to a media report.

The Financial Times reported on Friday that Rank Group hired Credit Suisse to sell Evergreen and JPMorgan to sell Closure Systems International, two of the three units flagged by holding company Reynolds Group Holdings in June as under review. The FT report, which cites unnamed people familiar with the matter, said the Evergreen sale could fetch as much as US$2.5 billion and Closure could go for more than US$1.5 billion.

Goldman Sachs has already been retained to sell Reynolds' SIG unit, which a Reuters report in June estimated could fetch some US$5 billion.

The sale processes were at an early stage, and there was no guarantee the businesses would be sold, FT reported.

Last month, Reynolds chief executive Tom Degnan scotched a report the asset sales were a precursor to an initial public offering, though he was reluctant to give the reasons behind the review saying it wouldn't be in the company's best interests.

The packaging group reported a profit of US$12 million in the six months ended June 30 on a 1.1 percent fall in sales to US$6.84 billion. Adjusted earnings before interest, tax, depreciation and amortisation fell to US$1.21 billion from US$1.25 billion a year earlier.

Reynolds had total debt of US$18.12 billion as at June 30, according to its second-quarter report published yesterday. That amounts to 6.3 times adjusted earnings, which management has been tasked by Hart to reduce to 5.5 times by the end of the year.

Reynolds spent 1.7 billion euros on SIG in 2007, acquiring the equity for the closures segment for US$708 million from an entity owned by Hart in 2009, according to filings to the SEC. The Evergreen unit was formed from a series purchases from entities owned by Hart for a total purchase price of US$1.6 billion in 2010.

The three units accounted for 38 percent of Reynolds' first-half adjusted earnings. SIG reported adjusted Ebitda of US$250 million on sales of US$1.06 billion in the half, while Evergreen contributed earnings of US$123 million on revenue of US$780 million and Closures had US$91 million of Ebitda on sales of US$572 million.

Hart began building the packaging empire in 2006 with the takeover of Carter Holt Harvey, going on to buy International Paper's beverage packing unit and Swiss company SIG the following year, and adding Alcoa's packaging business in 2008. He then ramped up the expansion in 2010, spending US$6.5 billion on the leveraged buyout of Pactiv and then the US$4.5 billion acquisition of Graham Packaging in 2011.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>



Environment: Preliminary Environmental Data On New Zealand’s Air Quality Released Today

The Ministry for the Environment and Stats NZ have published the Our air 2021: preliminary data release today. We are currently working to revise the Our air 2021 report to incorporate analysis of the World Health Organization (WHO) 2021 air quality guidelines that were released on 23 September 2021... More>>


Statistics: Food Prices Rise For Sixth Consecutive Month
Food prices rose 0.5 percent in September 2021 compared with August 2021, mainly influenced by higher prices for grocery food and meat, poultry, and fish, Stats NZ said today. September’s movement is the sixth consecutive monthly rise. After adjusting for seasonality, prices rose 0.9 percent... More>>



Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>


Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>

Bayleys: Latest Lockdown Adds Further Fuel To Industrial Property Market

The recent construction shutdown resulting from Auckland’s Covid 19’s lockdown restrictions has put additional pressure on an industrial property market that is already struggling to keep pace with demand... More>>