Brookfield Business Partners to Acquire Controlling Interest in Schoeller Allibert in Partnership With Schoeller Group

Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) ("Brookfield Business Partners"), together with institutional partners (collectively "Brookfield"), announced today that it has entered into an agreement to acquire a 75% controlling interest in the Schoeller Allibert Group B.V. (“Schoeller Allibert” or “the Company”), one of Europe’s largest manufacturers of returnable plastic packaging systems for €205 million.  The stake is being acquired from an indirect subsidiary of JPMorgan Chase & Co (NYSE:JPM) (“J.P. Morgan”).

Brookfield completed the transaction by partnering with the founding Schoeller family who will continue to hold the remaining 25% interest in the Company through Schoeller Group and expects to be a long-term partner in growing the business. The Schoeller Group have the opportunity to increase their ownership over time.

“This is a great transaction for the Company and completes a successful period of ownership by J.P. Morgan,” said Ian Robinson, CEO of Schoeller Allibert. “We are looking forward to building on our successes of recent years as we move into a new and exciting phase of our development with the support of the shareholders.”

“An increased global focus on sustainability, waste reduction, e-commerce and logistics automation positions the returnable packaging sector for meaningful growth, so we are pleased to invest in Schoeller Allibert which has built a highly regarded reputation in this space,” said Cyrus Madon, CEO, Brookfield Business Partners. “We look forward to partnering closely with the management team and the Schoeller Group to bring our operational expertise and geographic reach to create further value and grow the business.”

“We valued the partnership with J.P. Morgan and are excited about the new partnership with Brookfield. We look forward to an increased ability to grow the business organically through continued innovation as well as internationally, organically or through acquisitions, supported by Brookfield’s global presence, financial strength and expertise”, said Martin and Christoph Schoeller, Managing Partners of the Schoeller Group.

Business Overview
Schoeller Allibert has a product portfolio of over 1,000 types of returnable plastic crates and containers used by a diversified, global customer base across essential industry sectors, including agriculture, beverage, food processing and retail, industrial and automotive manufacturing and container pooling and rental companies. 

Business highlights:
  • Strong competitive position. Schoeller Allibert is a key player in Europe with a scale footprint of manufacturing sites in key markets including Germany, Netherlands, France, Spain, the UK, and one facility in the United States.
  •  Favourable market dynamics. As a substitute for one-way packaging, the returnable packaging industry is positioned for growth, a trend driven by a global focus on sustainability, waste reduction and growing e-commerce and logistics automation.
  •  Diversified, long-term customer base. The business serves over 10,000 customers, many through long-term relationships, that are diversified across segments and geographies. 
  •  Reputation for innovation.  Schoeller Allibert has a comprehensive patented product range of foldable containers, rigid pallet containers, beverage crates as well as trays, stackable boxes and pallets. The business helps its clients reduce logistics costs and produces innovative designs that can meet demanding logistics and retail marketing display requirements.

Funding 

Brookfield Business Partners will commit to fund up to €50 million of the equity on closing using existing liquidity. Prior to or following closing, a portion of Brookfield Business Partners' investment may be syndicated to other institutional investors.

Schoeller Allibert has €210 million in 8% Senior Secured Notes due in 2021 currently outstanding. The terms of the notes currently permit the issuance of additional notes and, in certain circumstances, holders may tender their notes for repurchase following the occurrence of a change of control.

Transaction Process

Closing of the transaction remains subject to customary conditions, including, among others, regulatory approvals and is expected to occur in the second quarter of 2018.

Schoeller Allibert is one of Europe’s key manufacturers of returnable plastic packaging systems. It has extensive expertise in a range of industries, including agriculture, automotive, food and food processing, beverage, retail, industrial manufacturing and pooling. 

Brookfield Business Partnersis a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the New York and Toronto stock exchanges. Important information may be disseminated exclusively via the website; investors should consult the site to access this information.  

Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management Inc. (NYSE:BAM) (TSX:BAM.A) (EURONEXT:BAMA), a leading global alternative asset manager with over $265 billion of assets under management. 

Schoeller Group, Munich is the management holding of the Schoeller family for their industrial and service businesses and has an established track record in complementary businesses in the supply chain logistics, intellectual property, consulting and real estate segments with annual revenues over €1.2 billion.

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