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Aluflexpack AG
Alte Aarauerstrasse 11 - 5734 Reinach AG - Switzerland
Press release
Reinach, 03 June 2019
Aluflexpack AG prepares for a public offering and listing on the SIX Swiss Exchange
- Aluflexpack specialises in the development and industrial manufacturing of high-quality flexible packaging solutions, predominantly made of aluminium
- Its focus is on attractive end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and dairy
- Listing on SIX Swiss Exchange planned in second quarter of 2019
- Target gross proceeds from new shares to be issued of approx. Euro 140 million
- Gross proceeds are to be used to finance the expansion of existing capacities, automation and bolt-on acquisitions
- The majority shareholder, Montana Tech Components AG ("Montana"), is to provide existing shares to cover potential over-allotments of up to 15 % of the base offering
- Montana is to remain the majority shareholder post IPO
- 03 June 2019: invitation to today's media conference (09:30 a.m.) at the Au Premier restaurant, in Zurich's main station
Aluflexpack AG ("Aluflexpack" or "the Company") plans to have its shares listed on the SIX Swiss Exchange in the second quarter of 2019 (International Reporting Standard).Headquartered in Reinach, Switzerland, the core business of the group is to develop and manufacture premium flexible packaging solutions predominantly in end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and dairy, where it focuses on fast-growing market niches.
In the course of the listing, new shares from a planned capital increase are expected to be offered, with targeted gross proceeds of around Euro 140 million. Moreover, existing shares will be made available for a possible over-allotment comprising up to 15 percent of the capital increase by the majority shareholder (Greenshoe).
Focus on fast-growing niches
In recent years, Aluflexpack has strategically positioned itself in fast-growing niche markets, with a focus on premium packaging solutions as well as outstanding product and service quality. In 2018, sales rose to around Euro 191.8 million[1]. The first 3 months of 2019 generated turnover of Euro 50.6 million (Q1 2018: around Euro 40.8 million). The adjusted EBITDA margin reached c. 13.9 %[2] for the first 3 months of 2019. One of the growth drivers was Coffee / Tea, where the company scored with reusable premium aluminum coffee pods, among other things. In this regard, as with numerous other products, Aluflexpack can draw on a deeply integrated in-house value chain for the benefit of its customers.
There is also considerable demand in the area of pharmaceutical packaging solutions, in which Aluflexpack has focused on the rapidly growing blister foil market. Rapid growth in this market is attributable to structural drivers such as demographic ageing, increased awareness of health and the growing number of people with access to the public health system.
There is also potential for growth in stand-up pouches, which are increasingly being used as the preferred form of packaging for pet food and food. In addition to excellent functional properties such as the barrier against moisture, air and light, this increasingly popular form of packaging can score among customers due to its ease of use (e.g. easy opening, reclosability) and above all, its high appeal on the shelves. In this product area, production capacity is to be significantly increased through targeted expansion investments in the next few years.
Investments in production capacity, automation and acquisitions planned
Aluflexpack intends to invest the targeted gross proceeds of around Euro 140 million primarily to expand production capacities in Europe, to automate production, for selective M&A in Asia, Europe, the MENA region and North America. Shareholder loans previously granted to prefund some of these growth initiatives will be redeemed. Approximately Euro 30 million are intended to be used to expand existing production capacities for stand-up pouches at the Umag production site in northern Croatia. A further Euro 30 million are intended to be invested in supplementary capacities at the other production sites and selectively on streamlining and automation facilities. Around Euro 80 million are intended to be used for value-enhancing acquisitions of which a low double-digit euro million amount has already been invested to acquire the Turkish company Arimpeks in September 2018 and was pre-financed by the existing shareholder.
"Based on the past and expected business growth, as well as the inquiries from our international customers, we aim to further expand our strong operational platform with additional production sites. These would ideally perform final production steps in our strategic markets and be situated close to our customers" explains CEO Igor Arbanas. The site expansion is also expected to lift further synergies in our deep and integrated value chain - just like the recent acquisitions and integration of Process Point Service (Liechtenstein/Switzerland, 2013), Eliopack (France, 2015) and Arimpeks (Turkey, 2018).
"Our customers are at the heart of everything we do. Our goal is to become their preferred development partner and supplier leveraged through our strengths in product and service quality, reliability, and innovation. This goal can be achieved by maintaining close and trustful relationships with our customers across their organizations, continuous development of our own organization, and expansion of our technology, production capabilities, and product portfolio. Accordingly this will also be the base for sustainable, long-term and profitable growth", said Igor Arbanas.
The majority shareholder taking the long view
Montana Tech Components AG ("Montana") is currently the sole shareholder of Aluflexpack. Montana is also known as the owner of VARTA AG and the Alu Menziken Group. Montana will remain the majority shareholder after the listing of Aluflexpack and, like its sister company VARTA, which was successfully floated on the stock exchange in 2017, plans to hold a majority stake in the long term. Martin Ohneberg, Chairman of the Board of Directors of Aluflexpack says: "Crucial to the success of Aluflexpack was its clear corporate strategy, which was based on targeted organic growth initiatives and value-accretive M&A activities. However, a significant share is also attributable to the employees and management team of Aluflexpack. For the future, we need to drive sustainable organic and inorganic growth through innovation, focus and market entries into new countries."
DDr. Michael Tojner, CEO and majority owner of Montana Tech Components AG, adds: "We want to support the positive development and increase in market share with innovative products as a shareholder over the long term. Montana plans to invest significant resources in the holding's Aerospace division over the next few years. For Aluflexpack, we consider self-financing via the stock exchange, as at VARTA, the right step due to its attractive growth opportunities. By holding the majority, we offer customers and employees a stable core shareholder."
Further details on the public offering
In the planned IPO Joh. Berenberg, Gossler & Co. KG ("Berenberg") acts as Sole Global Coordinator and Joint Bookrunner. Zürcher Kantonalbank ("ZKB") is mandated as Joint Bookrunner and Raiffeisen Centrobank as Co-Lead Manager. According to the current planning, the offering will comprise a public offering in Switzerland and private placements outside Switzerland.
A lock-up of twelve months is expected for the company and the management, and a lock-up of 24 months for the existing majority shareholder.
Invitation to media conference
Aluflexpack is planning a stock market flotation: CEO Igor Arbanas and CFO Johannes Steurer will present the company at today's media conference. The event will take place
- on: 03 June 2019, 09:30 to 10:30 a.m.
- at: Au Premier, Saal Bernina, Bahnhofplatz 15, 8001 Zurich
Conference language will be German, registration is not necessary.
Media contacts
Dynamics Group AG
Andreas Durisch / Thomas Balmer
adu@dynamicsgroup.ch / tba@dynamicsgroup.ch
+41 43 268 32 32
About Aluflexpack AG:
Aluflexpack AG (Aluflexpack) is a 100 % subsidiary of Montana Tech Components AG. Aluflexpack produces flexible packaging solutions mainly for end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and dairy. Well-established insights, service flexibility and innovative strength are what underpin long-term customer relationships; both with locally operating companies and large international corporations. Aluflexpack, headquartered in Reinach (AG), Switzerland, has production facilities in Switzerland, France and Turkey and four production facilities in Croatia. The number of employees as of March 31, 2019 was approximately 1,150. www.aluflexpack.com
About Montana Tech Components AG:
Montana Tech Components AG is a group focused on technology and innovation and active in growth areas including aviation, energy storage, metallurgy and industrial components. The individual group companies occupy leading positions in their global markets. By focusing on selected key technologies, market leadership and continuous innovation, Montana Tech Components pursues a sustainable growth strategy. With a current 7,800 employees, Montana Tech Components AG is active in 52 locations worldwide. www.montanatechcomponents.com
Disclaimer
The information contained herein is not for release, directly or indirectly, in or into the United States of America, Canada, Australia, Japan or any other jurisdiction where to do so would be unlawful. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in Canada, Australia or Japan or any other jurisdiction where such an offer or solicitation would be unlawful. In particular, this document is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or an exemption from registration. The securities referred to herein have not been and will not be registered under the Securities Act. No public offering of the securities will be made in the United States.
This communication is not being distributed to, and must not be passed on to, the general public in the United Kingdom. This announcement is made to and is directed only at persons in the United Kingdom having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) or are high net worth companies, unincorporated associations etc falling within Article 49(2), in each case of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, and to those persons to whom it can otherwise lawfully be distributed (all such persons together being referred to as "relevant persons"). This communication and the securities referred to herein are, and will be made, available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, such relevant persons. No other person should rely or act upon it. This communication is not intended for distribution to and must not be passed on to any retail client.
Statements contained herein may constitute "forward-looking statements". Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause the Company's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.
This communication is not an issuance or listing prospectus or a similar document in the sense of article 652a, article 752 and/or article 1156 of the Swiss Code of Obligations or articles 27 et seq. of the Listing Rules of the SIX Swiss Exchange and was not reviewed by any competent authority. Any offer of securities of the Company will be made solely by means of, and on the basis of, an offering memorandum that will contain detailed information about the Company and its management as well as risk factors and financial statements. Any person considering the purchase of any securities of the Company must inform itself independently based solely on such offering memorandum (including any supplement thereto). Investors are furthermore advised to consult their bank or financial adviser before making any investment decision.
[1] On a pro forma basis, including the effects from the Turkish Arimpeks acquired in September 2018 as if the company was acquired on 1 January, 2019
[2] Adjusted EBITDA defined as net income before taxes, financing income, finance costs, depreciation and amortisation and adjusted for exceptional charges of approximately Euro 1.1 million related to the public offering
