Business Irish

Thursday 29 September 2016

It's a different tune for Powerflute this time around

Published 16/09/2016 | 02:30

Tony Smurfit Jnr
Tony Smurfit Jnr

Powerflute and Madison Dearborn had been flirting on and off for nine months before agreeing to walk up the aisle.

  • Go To

With Powerflute having rejected the preliminary offer made by Madison Dearborn last year, this time around things are a bit different.

In 2015, Michael Smurfit had been working as an advisor to Madison Dearborn, and his Isle of Man-based Bacchantes vehicle was set to reinvest in Powerflute as part of the planned takeover revealed last December. Dermot Smurfit would have had no further interest in Powerflute, however.

Under the terms of the latest deal, neither brother will have any equity interest in Powerflute once the transaction announced yesterday is completed. So now the Smurfits' association with Powerflute will end entirely.

It's not the first time Madison Dearborn has helped make the family a fortune. Madison Dearborn was a backer of a €3.7bn take-private of packaging group Smurfit Kappa's predecessor, Jefferson Smurfit, in 2002. It had exited that investment by 2012.

Last year, Tony Smurfit Jnr took over as chief executive of Smurfit Kappa, where he had previously been chief operating officer.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business