Insider Media Limited

LINPAC group, the international plastic packaging manufacturer, has sold five of its non-core businesses to Chamonix Private Equity. The Solihull-headquartered company sold the assets to the private equity firm in a deal advised by Ernst & Young’s Birmingham-based mergers and acquisitions team.

The business units sold were LINPAC Storage Systems, LINPAC Environmental, LINPAC Recycling, Intellident and LINPAC Metal Decorating. The five were previously collectively known as the LINPAC Speciality Businesses.

Chamonix provided LINPAC with a solution to dispose of the five non-core, unrelated business units in one transaction rather than undertake five separate disposals.

John Darlington, executive chairman of LINPAC group, said: “We have sold five non-core business units, and are using the funds to pay-down debt. Even operations that are non-core require management attention, however, and the disposals have therefore released senior management time for use elsewhere in the business. It also means that we will be able to concentrate investment on our core activities in future.”

Ernst & Young’s Mark Stanway said: “This was a complex transaction which demonstrates that, even in today's challenging market conditions, a win-win result can still be reached for both buyer and seller. For multiple non-core disposals such as this, the right advice and a collaborative approach to structuring the transaction are essential in successfully achieving this outcome.

“The disposal of small portfolios of non-core assets by corporates is a trend we are seeing increasingly in the marketplace across a range of sectors.”

The sum of the deal was not disclosed.