Goodpack, the Singapore-based reusable intermediate bulk container rental service provider, announced this week that Kohlberg Kravis Roberts & Co. L.P. has offered to acquire the company for Singapore $1.40 billion, or $1.11 billion, according to reports. Goodpack is an RPA member.
The offer s subject to the approval of Goodpack shareholders who jointly own at least 75 percent of the company. David Lam, Founder and Executive Chairman of Goodpack, holds about 32 percent of Goodpack’s share capital, and has pledged to vote in favor of the share scheme.
“We are delighted to receive KKR’s proposal to acquire the Company by way of a scheme of arrangement,” says Lam. “The consideration price of S$2.50 per share provides an opportunity for Goodpack Shareholders to realise their investment in Goodpack Shares for cash at a significant premium to the historical trading prices of the Company’s shares.”
“Goodpack is a best-in-class provider of packaging and logistics solutions,” adds Mr. Ming Lu, Member of KKR and Head of KKR Southeast Asia. “We look forward to partnering with David and his management team in realising Goodpack’s potential and accelerating its growth by leveraging KKR’s extensive relationships in new verticals and unique value creation resources, such as KKR Capstone, which works very closely with our portfolio companies to drive operational improvements.”
Goodpack, founded in 1980 and listed on the Main Board of the SGX-ST in 2000, is the world’s largest provider of multi-modal, reusable metal intermediate bulk containers (IBC). Boasting a fleet of 3.2 million IBCs spread across over 5,000 delivery and collection points worldwide, Goodpack is committed to growing partnerships with global customers in the rubber, chemical, automotive and food processing sectors. Goodpack containers are currently used in more than 70 countries; they can be hired locally and dehired globally through a dedicated customer management system with RFID online tracking and local customer support.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. Upon completion of the acquisition, Goodpack will be delisted.
Goodpack had recently been linked to conversations involving Brambles.
To read the Goodpack press release, click here.
Goodpack’s management team will look to leverage KKR’s global network to penetrate new verticals and increase sales in existing markets.