SalzburgMilch announces the introduction of the on-the-go carton bottle
The Austrian dairy company SalzburgMilch plans to be the first company in Europe to launch products in the SIG DomeMini on-the-go carton bottle in mid-2026.
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SIG has entered into an agreement with Pactiv Evergreen Inc. to acquire its Asia-Pacific fresh produce business („Evergreen Asia“) for an enterprise value of USD 335 million. The transaction is expected to close in the second or third quarter of 2022, subject to customary closing conditions, and will be financed through debt. The acquisition will be accretive to cash flow and earnings per share from the first year.
Evergreen Asia serves customers with Filling systems, carton packaging, closures and services for fresh products, mainly milk, and operates production facilities in China, South Korea and Taiwan. Evergreen Asia is the market leader in China, where the company generates around 50 per cent of its sales. The rest of its sales are mainly generated in South Korea and Taiwan, where Evergreen Asia is one of the leading suppliers. Evergreen Asia has also gained a foothold in other Southeast Asian markets where SIG is already well positioned in the aseptic segment.
Expansion for further innovations
The acquisition will SIG enable the Expand business with existing customers and broaden the customer base. SIG plans to utilise its existing local presence in the area of research and development, the associated innovation capability and marketing expertise to introduce further innovative packaging formats for fresh milk products.
„In In China, milk is increasingly seen as an important source of protein and a health benefit, which represents an attractive growth opportunity for both fresh milk and aseptic milk. Evergreen Asia's fresh milk packaging business is a Ideal addition to our existing portfolio of aseptic packaging for liquid milk products, which was previously primarily focussed on portion sizes and on-the-go consumption. As fresh milk is mainly consumed at home, this acquisition will enable us to significantly strengthen the larger packaging segment.»
Lidong Fan, President & General Manager Asia Pacific North
The takeover
The company expects that the complementary activities of Evergreen Asia and SIG will lead to significant cost and revenue synergies. As part of the transaction, SIG will be Pactiv Evergreen Inc. conclude a new contract for the supply of cardboard. In 2021, Evergreen Asia is expected to generate sales of $160 million and adjusted EBITDA of $28 million. On a pro-forma basis, the additional business for SIG will account for approximately 7 per cent of Group revenue.
The enterprise value corresponds to around twelve times the expected adjusted EBITDA for 2021. Taking into account the expected synergies and with the supply agreement for cartonboard at market conditions, this value is around 9.5. Transaction is financed with a transitional loan with a term of up to 18 months. SIG plans to access the debt capital market to replace this loan in order to secure long-term financing through a bond or another instrument.
Source: SIG
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