As expected (see PIE 13, 2003) British packaging group Linpac (GB-Birmingham; www.linpac.com) is being sold to a private equity investor. The complex GBP 860m (around EUR 1.24 bn) deal sees Montagu Equity Partners (GB-London EC4V 3PE; www.montaguequity.com), formerly HSBC, initially taking over the company, subject to shareholder approval. This transaction will be handled by a newly founded company, Pienal Ltd., set up by Montagu in conjunction with Linpac´s senior management.

In a second step, existing Linpac shareholders, including the founding Cornish family, which up to now has held 40%, four other families, senior management and Linpac´s 12,000 employees will have options to buy shares in the newly capitalised firm. According to reports, the Cornish family will have the right to buy shares up to a value of GBP 120m, while employee participation will be limited to GBP 500m.

The goal of the new Linpac, of which current managing director David Williams will become executive chairman, will be to boost sales from around GBP 1.2 bn to GBP 2 bn. The Birmingham-based packaging group has a broad portfolio encompassing in particular plastic packaging, Linpac Plastics (www.linpac-plastics.co.uk), which manufactures primarily containers for fresh food, Linpac Automotive (www.linpac-automotive.com) and contract injection moulding specialist Linpac Mouldings (www.linpac-mouldings.com).