Spratt Endicott recently advised the shareholders of I.G. Industries and Brayford Plastics on the sale of their shares to American packaging company, ProAmpac.
I.G. Industries and Brayford Plastics, both part of the same group of companies owned by the Lari family, are market leaders in the manufacture of polyethylene-based films, providing recyclable plastics to a number of industries in the UK from their two sites in the North-East of England. I.G. Industries has been a family business since its inception over 30 years ago and its innovation in the market has allowed it to become a national presence, acquiring Brayford Plastics in 2018.
ProAmpac, a global leader in packaging based in Cincinnati, Ohio, is primarily owned by American private-equity firm Pritzker Private Capital and was seeking to expand its international outreach.
The transaction, the largest in Spratt Endicott’s history, involved a number of complexities due to the nature of the industry, the parties involved and the particular details of the deal itself, including confidentiality and the buy-out of minority shareholders, as well as providing for the ongoing management of I.G. Industries and Brayford Plastics by the existing leadership team. This deal also brought with it the logistical challenges of co-ordinating parties based in the UK, various parts of the United States and Europe. However, with the considerable experience of the Spratt Endicott team, we were able to work with our clients and their advisors seamlessly and help deliver favourable results for all parties involved.
The transaction was led by Director Hitendra Patel, with support from Catherine O’Riordan (Associate, Corporate & Commercial), Andrew Woods (Director, Commercial Property), Lydia Mills (Trainee Solicitor) and Christine Ward (Tax Consultant). The Spratt Endicott team worked closely with MP Corporate Finance, based in Vienna, Austria and MSNI Consultancy.
Bob Lari, family representative, “The sale of IG Industries Plc and its subsidiary, a family run business established over 33 years ago, to ProAmpac, a world leading Private Equity backed business based in the US was a highly complex and difficult transaction. The family were torn between choosing Spratt Endicott and one of the larger London firms to match the huge legal team representing ProAmpac. Given the excellent service provided by Hitendra and the whole of Spratt Endicott on prior but much smaller transactions we decided to stick with Spratt Endicott. We made the right choice! The team faced the added challenge of the Covid pandemic, major time zone differences and handling multiple family and minority shareholders. Spratt Endicott proved to be flexible, highly responsive, gave excellent professional advice and explained complex issues in a manner that was easily understood by non-lawyers. In addition, their fees were great value for money. There is no higher accolade.”
Helmut Mödlhammer, Managing Director at MP Corporate Finance, “An efficient collaboration between legal and corporate finance advisors is key in an M&A process. Our experience with Spratt Endicott in this respect has been very positive. Along the process Hitendra and his team displayed not only excellent professional expertise but also a high level of commercial understanding, a solution-oriented attitude and firm negotiation skills. It has been a pleasure to work together on this project.”
Mo Mannan, Principal at MSNI Consultancy, “I have worked with Hitendra on a number of corporate transactions in the last 15 years and have been impressed by his knowledge and ability to swiftly conclude transactions. Hitendra and the Spratt Endicott team undertook a complex and challenging assignment in helping the sale of the IG group to ProAmpac and completed the work admirably. The level of service and focus was outstanding.”