UK packaging provider Collcap Group and, International packaging provider, Quadpack Industries SA have merged in a deal which creates a pan European Packaging Group, in a €40m transaction with combined annual revenues of around €90m. The combined group will retain the Quadpack name and will be a leading presence in Europe for the manufacture and supply of packaging solutions to the health and beauty industry.
Collcap’s head office in Leek, Staffordshire, will be the centre of the groups’ UK operations, with Quadpack’s head office in Barcelona remaining the global headquarters of the group. Collcap’s operations in Hong Kong will be merged into the group.
John McDermott, the founder of Collcap joins the board of Quadpack Industries as a result of the transaction.
John McDermott said “Both Collcap and Quadpack are thriving companies. The transaction will result in increased market share, resources and purchasing power and by consequence, competitive edge. Add that to our strengths in market knowledge, product development, creativity and technical expertise, you have a winning formula”.
Sheffield based deal making firm Castle Square Corporate Finance, led by Director Kevan Shaw, advised the shareholders of Collcap on the transaction, providing advice on the structure of the transaction and the relative valuation of the companies for the merger via a due diligence process and, also performed a due diligence exercise on Quadpack Industries.
Kevan Shaw, Director at Castle Square said “Having advised John on various assignments over the years, we are delighted to have assisted John in merging Collcap with Quadpack Industries which is a perfect fit. Both companies were growing in their own right, but together we are sure the enlarged group will be a major force in the European packaging sector”.
Quadpack Industries has an overall growth strategy to prepare the group for an Initial Public Offering within the next two years. It is listed on the Marche Libre, part of the EuroNext Stock Exchange as a preliminary step on this pathway.
