Sustainable protective packaging solutions provider Ranpak has agreed to merge with a special purpose acquisition firm One Madison to create a firm with an enterprise value of around $1.09bn.
One Madison has signed an agreement with affiliates of Rhône Capital to combine with Ranpak, which provides fiber-based and environmentally sustainable protective packaging solutions for products in commerce and industrial supply chain sectors.
As per terms of the deal, One Madison will acquire Ranpak for $950m in cash, including the repayment of existing first lien and second lien debt.
The investors and strategic partners of One Madison comprise of JS Capital and Soros Capital, and entities controlled by Blackstone Alternative Solutions.
One Madison Group chairman and CEO Omar Asali said: “We launched One Madison Corporation less than a year ago to acquire a business that met several criteria: a strong brand with leading market share, a history of innovation, a scalable platform with organic and strategic growth potential, and strong free cash flow generation.”
Ranpak’s product portfolio is comprised of FillPak M, FillPak TT, FillPak TTC, FillPak SL, FillPak, FillPak with AccuFill, PadPak CC, PadPak JR, PadPak AJR, Geami WrapPak EX, Geami WrapPak M, Geami WrapPak HV e3neo automated solutions, and fully automated system.
The company is said to use a systems-based business model to expedite recurring revenue through an installed platform of more than 90,000 machines.
Leveraging the platform, the company markets value-added consumables to end-users through a network of exclusive distributor relationships.
Ranpak provides products and services to around 30,000 diversified end-users in more than 40 countries. It generates one-third of its sales from e-commerce sector.
Ranpak president and CEO Mark Borseth said: “Omar and his team embrace our products and business strategy and the importance of continuing to lead in environmental sustainability, particularly in e-Commerce.”
Subject to regulatory approvals and other customary closing conditions, the deal is expected to complete in spring 2019.
Once the deal is concluded, One Madison team works with Ranpak to identify growth areas and expand of industrial and consumer relationships.