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Valpak deal details unveiled

Valpak has unveiled details of its proposed restructure, which would see its existing management buy 70% of the business and German compliance scheme owner Greenpoint snap up the rest.

The packaging compliance scheme’s 4,004 members, the legal owners, are set to vote on the package at a general meeting on 26 January.

Members will secure £340 each, a total of £1.4m, as an initial consideration if they sanction the deal, with a further £270 deferred consideration, some £1.125m in all, if the packaging regulations continue in 2013.

The business will remain focused on UK compliance, and Greenpoint has made £2m capital available for investment in the future development of services and products both in the UK and internationally.

Valpak’s management have also committed not to sell any shares for at least three years.

The offer, which follows the management team initially bidding to buy the organisation outright last August, has been assessed and recommended by the independent directors of Valpak.

Valpak chief executive Steve Gough said: “Since our initial plans in the summer were put on hold, Valpak received a number of expressions of interest for the business. Of all the expressions of interest, the approach from Greenpoint offered the best future structure for Valpak and its members.

“In particular, I am very pleased that as well as offering an improved compensation for members, the revised offer guarantees access to funds that will enable us to develop and invest at a faster rate than we would have been able to do otherwise.

“In addition, we have built a scheme whereby existing staff will have the opportunity to develop a stake in the future success of the company through a share options scheme.”

As part of the deal, Greenpoint will have representation on the board of Valpak, but its existing independent directors will remain to ensure continuity for at least a year.

Greenpoint spokesman Philippe von Stuaffenberg said: “We are delighted to be involved with Valpak in this very exciting new venture. During our discussions with Valpak we have been very impressed with the quality of its team, and we are looking forward to working closely together in the future.

“We also want to stress to Valpak members that we believe the UK recycling compliance system works extremely well and should remain in place. We are eager to learn from and apply Valpak’s expertise and experience with the UK system.”

Greenpoint is a Luxembourg holding company whose main asset is DerGrüne Punkt - Duales System Deutschland - the German recycling compliance services firm.

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