Valpak Buyout For The Companys Long Term Benefit
23 January 2012
Gerry Orbell, senior independent director commented on the background and process the independent directors went through to reach their recommendation concerning the management-led buyout of the Company
"I believe that this change is for the long term benefit of the Company, its members, employees and other stakeholders," Orbell commented in a statement on behalf of the independent directors of Valpak. "I expect the cornerstone of the new Valpak to continue to be high quality compliance services at the lowest possible cost."
Orbell continued: "Greenpoint owns a compliance company elsewhere in Europe; has access to extensive funds for expansion; and is content to support the management by becoming a 30 percent shareholder and allowing the present management to continue to run Valpak for the benefit of its clients. Moreover Greenpoint shares Valpak's vision of expanding the compliance and related services to members both in the UK and ultimately internationally.
"We are aware that a few bidders may be disappointed but we thank them for their interest."
Background And Process
- - For about a year the Board of Valpak has been considering a change of structure
- - The matter was triggered by the apparent softening of the Government's attitude to increased compliance targets which would lead to uncertainty in the packaging waste compliance arena and a threat to the long term welfare of Valpak
- - Independent Directors were appointed to oversee matters concerning the Company reconstruction
- - Valpak has over 4000 members and they have been extensively canvassed throughout the process
- - The Independent Directors took advice from the Company's auditors and solicitors regarding the entire process
- - The Independent Directors invited the key executives to consider buying the Company and making a long term commitment to Valpak
- - During the Summer of 2011 Valpak members were provided with a full information memorandum and asked to vote on a change
- - The overwhelming majority of postal votes were cast in favour of the proposal
- - In the following weeks the Independent Directors received other expressions of interest from third party bidders
- - One bidder in particular stood out against the rest - Greenpoint
- - On 6th January 2012 the Independent Directors issued an information memorandum to members containing a revised recommendation that they vote by 26th January 2012 in favour of the modified management-led buyout process comprising 70 percent management and 30 percent Greenpoint
- - There is now an offer of £340 to each member with a further £270 as soon as the new packaging targets become law
- - In accordance with the legal process, copies of the expressions of interest outlining proposed offers, excluding those that were subsequently withdrawn, were made available to Valpak members
- - In recent weeks Valpak has conducted a number of briefing sessions for members and the feedback is very positive.