Toronto-based Onex Corp. has announced that it is paying up to €3.75 billion ($4.66 billion) to buy out the Swiss carton packaging maker SIG Combibloc Group AG. The amount of €3.575 billion ($4.44 billion) will be paid at the closing of the transaction, with an additional amount of up to €175 million ($217 million) payable based on the financial performance of SIG in 2015 and 2016.
News of the acquisition does not come as a complete surprise: since 2007, SIG has been owned by Reynolds Group Holdings Limited, which is a part of the Rank Group of New Zealand. Earlier this year, Reynolds announced that it was undertaking a strategic review of its SIG business, which could result in a decision to sell. In a presentation of the third quarter results of this year, the company noted that its performance was being affected by lower sales, and higher manufacturing and raw material costs, particularly for resin.
SIG is the second largest provider - after TetraPak - of aseptic carton packaging globally. Based in Switzerland, SIG provides beverage and food producers with a comprehensive product portfolio of aseptic carton sleeves and closures, as well as the filling machines that producers and packagers use with these sleeves. The company operates seven production facilities globally, based out of Europe, South America and Asia Pacific.