Sanovo Greenpack is South America's leading producer of moulded-fibre egg and fruit packaging with around 600 employees and four production facilities in Brazil and Argentina.
In 2014, Sanovo Greenpack is expected to generate revenue of around DKK 400 million ($65.9 million) and operating profit at the level of DKK 45 million ($7.4 million) based on current exchange rates. The transaction, which is expected to close in early 2015, is binding and will strengthen Hartmann's earnings per share (EPS) already next year.
The purchase price for the shares in Sanovo Greenpack is DKK 300 million ($49.4 million), corresponding to an EBITDA multiple of 5.5, and is financed through bank loans.
"We have built a stronger Hartmann over the last few years, and the acquisition of Sanovo Greenpack is a natural next step in our efforts to speed up growth. Alongside the expansion in South America, we maintain our focus on optimising our European business and continuing the progress in North America where the expanded production capacity is now in place," says Ulrik Kolding Hartvig, CEO of Hartmann.
Dividend policy and financing of the acquisition Hartmann's current dividend policy is maintained, and it remains the Board of Directors' view that excess capital is distributed at a level that will generally maintain Hartmann's equity ratio at a maximum of 45%. As always, the distribution of excess capital will take into account Hartmann's growth plans and liquidity requirements.
