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Madison Dearborn agrees to acquire IPL Plastics

Former One 51 agrees €350m sale

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US private equity group Madison Dearborn. Photo: Tim Boyle/Bloomberg News

US private equity group Madison Dearborn. Photo: Tim Boyle/Bloomberg News

BLOOMBERG NEWS

US private equity group Madison Dearborn. Photo: Tim Boyle/Bloomberg News

IPL Plastics, formerly One 51, is being sold for CA$555m (€354m) to US private equity firm Madison Dearborn Partners, LLC (“MDP”), a Chicago-based private equity firm.

Shareholders will receive C$10.00 in cash per share, less than the price shares floated at two years ago but a 153pc premium to the closing price on May 15, 2020 before media reports a deal was in the works.
The sale is subject to approvals by IPL shareholders, and has been unanimously recommended by the board of directors.
IPL’s biggest shareholder Caisse de dépôt et placement du Québec (CDPQ), will roll most of its stake into the new ownership and will emerge with a minority 24.9pc stake.
One51 emerged out of the IAWS group of companies but first entered the plastics business in 2006 when it acquired Protech Plastics. Its €200m purchase of a 67pc stake in Canadian firm IPL in July 2015 was transformational in shifting One51 from investment vehicle to plastics company.

The investment in IPL increased One51’s annual sales by two-thirds from €275m to €450m.

In December 2017 One51 shareholders approved an arrangement under which CDPQ and a number of other large IPL shareholders swapped their shares in the Canadian company for shares in One51, which then changed its name to IPL Plastics.

The company then floated its shares on the Toronto Stock Exchange in June 2018.
Former One51 shareholders received one new IPL shares for every five existing One51 shares.

The new shares were priced at CA$13.50.
IPL's share price performed poorly in the two years since the IPO, prompting takeover interest that has now lead to a formal offer backed by the board.

Online Editors