In two separate business developments in Australia, Pro-Pac Packaging Ltd and Integrated Packaging Group have merged in a $177 million deal while the government has backed three biotech startups with a $10.6 million funding.
Pro-Pac enters $177m merger with IPG
Australia-listed Pro-Pac Packaging Ltd (Pro-Pac) has entered into a $177.5 million merger with Integrated Packaging Group (IPG) to become a leader in the flexible and industrial packaging space in the country.
Pro-Pac seeks to acquire the entire issued capital of IPG for $177.5 million from funds managed by Advent Partners Pty Ltd (Advent), and IPG senior management.
The merger will be funded through a combination of $60 million Pro-Pac shares issued to the vendors, a $54.8 million fully underwritten equity raising, and $70 million from a new debt facility.
Pro-Pac has executed a term sheet with ANZ Bank regarding the provision of debt financing. Completion of the merger is expected to occur in early November 2017.
Sydney-based Pro-Pac provides rigid packaging solutions for blue chip clients. IPG claims to be Australia’s largest specialist manufacturer and distributor of flexibles, film, wrap and associated products.
Australia invests $10.6m in three healthtech startups
The Australian government is investing $10.6 million (AU$13.3 million) in three local healthtech startups that work on providing solutions for disabled persons.
The amount of investments will be taken from the A$500 million Biomedical Translation Fund (BTF) – a key initiative of the government’s National Innovation and Science Agenda, according to ICT content platform OpenGov.
The startups work on medical breakthroughs that will help people with severe disabilities walk again and support thousands of Australians facing crippling chronic back pain.
Minister for Health Greg Hunt said, “this vital funding will support researchers when they need it most—for clinical testing, developing prototypes and other requirements before a high potential product or service can come on the market.”
Launched in December 2016, the BTF is tasked to make venture capital investments in promising biomedical innovations with commercialisation potential in Australia. It has three fund managers Brandon Capital Partners, OneVentures, and BioScience Managers.