CDPQ and Fonds de solidarité backed IPL files for initial public offering

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By Ted Liu

IPL Plastics Inc., a portfolio company of Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité des travailleurs du Québec (F.T.Q.), has filed a preliminary prospectus in connection with a proposed initial public offering (IPO) of common shares with terms to be determined.

The offering by newly formed IPL Plastics Inc. is being carried out in connection with, and is conditional on, a scheme of arrangement by IPL Plastics plc pursuant to which all of the existing shareholders of IPL Plastics plc will exchange their shares for Class B common shares of IPL Plastics Inc on the basis of five shares in IPL Plastics plc for one Class B Common Share of IPL Plastics Inc.

Montréal base IPL Plastics Inc. has applied to list its common shares on the Toronto Stock Exchange (TSX).

Upon closing of the offering, CDQP will be the only entity holding 10% or more of the voting rights.

One51 plc, IPL Plastics’ predecessor, together with CDPQ and Fonds de solidarité, acquired IPL Inc. for $218 million from NOVACAP in 2015 (all figures in US dollars). The acquisition was funded by CDN $45 million sub-debt from Investissement Québec (IQ), CDPQ and Fonds de solidarité, and CDN $150 million senior debt and revolving credit facility from National Bank of Canada and HSBC.

IPL acquired Encore for $35 million in 2016, and Macro for $151 million in 2017. In 2017, One51disposed of ClearCircle Environmental, its European specialized environmental services business, with a view to focusing solely on rigid plastics. On December 7, 2017, One51 changed its name to IPL Plastics plc.

IPL Plastics is a leading sustainable packaging solutions provider growing at a faster pace than its underlying markets. The company manufactures specialty packaging products used primarily in the food and consumer, agricultural, logistics and environmental end-markets.

The U.S., the U.K. and Canada are its three largest geographical markets. In Fiscal 2017, IPL Plastics had pro forma revenues from continuing operations of $574.3 million, pro forma Adjusted EBITDA of $85.7 million, and pro forma net income of $24.0 million.

BMO Capital Markets, CIBC World Markets Inc. and RBC Capital Markets act as lead underwriters. Stikeman Elliott LLP and McCarthy Tétrault LLP act as legal counsel to IPL and the underwriters.

photo credit: IPL PLastics