Cardia Bioplastics, the Melbourne, Australia-based supplier of biohybrid and compostable resins derived from renewable sources, has signed a terms sheet with privately held Stellar Films Group for a proposed merger of the businesses of the two groups.
The merger, should it proceed, is intended to create a leader in sustainable packaging: Cardia Bioplastics holds a strong patent portfolio and develops, manufactures and markets its patented renewable resource-based materials and finished products for the global packaging and plastic products industries. Fuelled by the global trend towards sustainable packaging, the company, which was established in 2002, is experiencing robust growth. Stellar Films, likewise headquartered in Melbourne, manufactures and markets high quality cast films to the personal care, hygiene and medical product industries. Over the last fifteen years, Stellar Films Group with average sales over the last three years of over $21 million has developed partnerships with customers in over twenty-seven countries throughout North America, Asia, Africa, the Middle East and Australia/New Zealand.
Under the terms of the proposed merger, Cardia Bioplastics will acquire all of the shares and units issued in Stellar Films and issue ordinary shares in Cardia Bioplastics to the owners of Stellar Films. Following completion of the proposed merger, it is currently anticipated that Cardia shareholders will own 42% of the merged group and the owners of Stellar Films will own 58% of the merged group.