SIG
Rank expected to make higher bid / Ferd has no plans to up the ante / Sales, earnings growth in 2006
The takeover battle for SIG Holding (Neuhausen / Switzerland; www.sig.biz) looks set to enter a new round. The board of directors of the Swiss packaging group said it has "taken note" that New Zealand´s Rank Group (Auckland) has increased its shareholding to 22% and intends to raise its offer to CHF 435 (EUR 269) per share, to be paid in cash. It planned to state its position on 22 March 2007, following the publication of Rank´s announcement on 13 March.
In February, SIG´s board rejected the overseas investor´s previous bid of CHF 370 per share, and declined to recommend acceptance or rejection of the competing CHF 400 offer by Romanshorn, the acquisition vehicle for a consortium of Norway´s Ferd group with CVC Capital Partners, owners of packaging competitor Elopak (Spikkestad / Norway; www.elopak.com) – see Plasteurope.com Web of 14.02.2007. Ferd has said it has no plans to make a higher bid.
SIG meanwhile has reported sales of EUR 1.3 bn for 2006. The 12% year-on-year increase was in line with growth seen in the first half year (see Plasteurope.com Web of 29.08.2006). EBIT rose 34% against 2005 to EUR 90m. Prior to one-time items, the increase was 42% to EUR 108m. Net profit rose by an impressive 53% to EUR 60m. Both business units, SIG Combibloc (Linnich / Germany; www.combibloc.com), a manufacturer of cartons for beverages and food products, and SIG Beverages (www.sigbeverages.com), which supplies plastic packaging solutions, contributed to the positive results.
Net sales at SIG Beverages (excluding SIG Cantec, which was divested in September 2006) increased by 29% to EUR 129m. The traditional business of subsidiary SIG Corpoplast (Hamburg / Germany; www.sigcorpoplast.com) achieved record earnings. The good performance is attributed in particular to company´s new positioning of itself as a specialist in "Bottles & Shapes", as well as to strong demand in the eastern European and German markets. The relatively new "Asbofill" and "Plasmax" products also made significant progress in 2006.
Turnover at SIG Combibloc was virtually flat at EUR 1.2 bn (EUR 1.1 bn). Nevertheless, sales in strategic growth markets outside Europe increased by 30 %. Southeast Asia and China in particular continued to flourish. Turnover in Europe was up by a respectable 6%, and the company achieved double-digit growth in the Russian market. In Germany, Combibloc´s main market, partial substitution of carton packaging by PET in the juice segment proceeded slower than expected, according to SIG. The company was able to expand its dairy carton business, which is taking on strategic importance, and also gained market share in the food business.
Looking ahead, SIG said it is confident that both parts of its business "can demonstrate excellent longer-term growth perspectives." However, the dynamics are expected to slow, as PET substitution in the German juice market is likely to accelerate, "despite the ecological advantages" of carton packaging. Group EBIT and corporate net profit are forecast to increase, with turnover predicted to see a double-digit rise from 2008 forward.
e-Service:
SIG annual report 2006 as PDF document (2,100 KB)
In February, SIG´s board rejected the overseas investor´s previous bid of CHF 370 per share, and declined to recommend acceptance or rejection of the competing CHF 400 offer by Romanshorn, the acquisition vehicle for a consortium of Norway´s Ferd group with CVC Capital Partners, owners of packaging competitor Elopak (Spikkestad / Norway; www.elopak.com) – see Plasteurope.com Web of 14.02.2007. Ferd has said it has no plans to make a higher bid.
SIG meanwhile has reported sales of EUR 1.3 bn for 2006. The 12% year-on-year increase was in line with growth seen in the first half year (see Plasteurope.com Web of 29.08.2006). EBIT rose 34% against 2005 to EUR 90m. Prior to one-time items, the increase was 42% to EUR 108m. Net profit rose by an impressive 53% to EUR 60m. Both business units, SIG Combibloc (Linnich / Germany; www.combibloc.com), a manufacturer of cartons for beverages and food products, and SIG Beverages (www.sigbeverages.com), which supplies plastic packaging solutions, contributed to the positive results.
Net sales at SIG Beverages (excluding SIG Cantec, which was divested in September 2006) increased by 29% to EUR 129m. The traditional business of subsidiary SIG Corpoplast (Hamburg / Germany; www.sigcorpoplast.com) achieved record earnings. The good performance is attributed in particular to company´s new positioning of itself as a specialist in "Bottles & Shapes", as well as to strong demand in the eastern European and German markets. The relatively new "Asbofill" and "Plasmax" products also made significant progress in 2006.
Turnover at SIG Combibloc was virtually flat at EUR 1.2 bn (EUR 1.1 bn). Nevertheless, sales in strategic growth markets outside Europe increased by 30 %. Southeast Asia and China in particular continued to flourish. Turnover in Europe was up by a respectable 6%, and the company achieved double-digit growth in the Russian market. In Germany, Combibloc´s main market, partial substitution of carton packaging by PET in the juice segment proceeded slower than expected, according to SIG. The company was able to expand its dairy carton business, which is taking on strategic importance, and also gained market share in the food business.
Looking ahead, SIG said it is confident that both parts of its business "can demonstrate excellent longer-term growth perspectives." However, the dynamics are expected to slow, as PET substitution in the German juice market is likely to accelerate, "despite the ecological advantages" of carton packaging. Group EBIT and corporate net profit are forecast to increase, with turnover predicted to see a double-digit rise from 2008 forward.
e-Service:
SIG annual report 2006 as PDF document (2,100 KB)
20.03.2007 Plasteurope.com 728 [207627]
Published on 20.03.2007
German version of this article...