Elopak AS plans EUR 50 million IPO on the Oslo Stock Exchange
OSLO, NORWAY: Elopak AS announced its intention to launch an initial public offering of its shares and to apply for a listing on the Oslo Stock Exchange.
The Board of Directors, along with Ferd, who founded and have owned Elopak for 64 years, believe that a listing of the Company’s shares on the Oslo Stock Exchange represents an important step in the continued development of the Company.
Ferd is a family-owned Norwegian investment-company committed to value-creating ownership of businesses and investments in financial assets. In addition to the group’s purely commercial activities, Ferd has an extensive involvement in social entrepreneurship. Ferd is wholly owned by Johan H. Andresen and family.
The listing of Elopak’s shares will support the Company’s ambitions for innovation and growth, and provide greater flexibility to expand as opportunities arise. The Offering will provide access to Norwegian and international capital markets, allow the Company to diversify its ownership structure and contribute to a strong, diverse and long-term shareholder base.
Ferd intends to remain an active and committed shareholder following the IPO and is committed to ensuring Elopak continues to play a major part in the global shift towards a low-carbon circular economy.
Thomas Körmendi, Company CEO, commented: “I am proud to announce our intention to list on Oslo Børs, and start a new chapter with Elopak as a listed entity. From the hard work of our employees, to operational improvements and the launch of innovative new products, Elopak has demonstrated its strength and potential over the years. As a leading fresh liquid carton packaging company today, we are excited to advance Elopak even further and deliver on our ambitious plans for the future.”
Morten Borge, CEO of Ferd, commented: “Over the years Elopak has grown from a local hero to a global industry leader. As long term owners and supporters we are impressed with Elopak’s achievements in driving sustainable and carbon neutral packaging, with a long track record of innovation, technological differentiation and R&D efforts both in Norway and internationally”.
The Offering is expected to consist of a public offering in Norway, and a private placement to certain institutional investors internationally. The IPO is expected to consist of an issue of new shares to raise gross proceeds of approximately EUR 50 million and a sale of existing shares, by Elopak’s main shareholder Ferd, who currently owns 99.73% of Elopak’s outstanding shares.
Ferd, owned by the Andresen family, has been a shareholder in Elopak since its inception in 1957, and intends to remain an active and committed shareholder also after the IPO.
The net proceeds from the sale of new shares will be used to pay down debt with the aim to reach the Company’s target leverage of ~2.0x adjusted EBITDA in the medium term and optimize the balance sheet to be well positioned to invest in future growth.
Elopak is also delighted to announce that Nippon Paper Industries Co. Ltd (“Nippon Paper”) has entered into a cornerstone agreement to acquire shares in the Offering, equivalent to 5.0% of the share capital of Elopak ASA, at the final offer price. Nippon Paper, the largest liquid packaging player in Japan, has shown their support for and belief in Elopak’s business and strategic outlook, building on a relationship spanning more than 30 years.
Nippon Paper is both an existing strategic partner through a product licensing agreement signed in March 2016 that allows Nippon Paper to manufacture and sell certain Pure-Pak products in Japan and also a board supplier to Elopak in the Americas region. Nippon Paper manufactures and sells paper and pulp products, and also operates a wood building material business, logistics, and leisure services. Nippon Paper, headquartered in Tokyo, is listed on the Tokyo Stock Exchange (TYO:3863) and is a Nikkei 225 constituent.
Elopak is a leading global supplier of carton packaging and filling equipment for liquid food, catering to both the fresh and aseptic segments. The Company is a leading player in fresh in Europe and the Americas, and has a strong and growing presence in aseptic liquid carton packaging.
Elopak is at the forefront of sustainable packaging. Elopak uses renewable, recyclable and sustainably sourced materials to provide innovative packaging solutions. Elopak’s iconic Pure-Pak® cartons are designed with the environment, safety and convenience front of mind. They offer a natural and convenient alternative to plastic bottles and fit within a low carbon circular economy.
The Company is a complete end to end solution provider covering the entire customer journey from its installed base of 600 filling machines globally and offers a complete product portfolio of fresh and aseptic packaging solutions and value add aftermarket support including service and spare parts.
In 2020, the Company achieved revenues of EUR 909 million and delivered an adjusted EBITDA of EUR 122 million.
About The Author
