Multi Packaging Sets Terms for IPO

Multi Packaging Solutions International has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The 18.75 million shares in offering are expected to price in the range of $15 to $17, with an overallotment option for an additional 2.81 million shares. At the maximum price, the entire offering is valued up to $366.56 million. The company intends to list on the New York Stock Exchange under the symbol MPSX.

The underwriters for the offering are Merrill Lynch, Citigroup, Barclays, Credit Suisse, Goldman Sachs, UBS Investment Bank, Baird and BMO Capital Markets.

This is a leading, global provider of value-added specialty packaging solutions, based on sales, focused on high complexity products for the consumer, health care and multimedia markets. Multi Packaging provides customers with an extensive array of print-based specialty packaging solutions, including premium folding cartons, inserts, labels and rigid packaging across a variety of substrates and finishes, which are complemented by value-added services, including creative design, new product development and customized supply chain solutions.

For the fiscal year ended June 30, approximately 47%, 47% and 6% of its acquisition adjusted pro forma net sales came from North American, European and Asian segments, respectively. The company believes that its core addressable consumer and health care end markets, which account for approximately 87% of acquisition adjusted pro forma net sales, encompass attractive, resilient and growing packaging categories.

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In the filing, the company said:

We believe we are one of the few companies in our addressable markets which offers a full range of products across multiple geographies. This unique capability presents a compelling value proposition to our customers as they continue to rationalize their supply chain and seek to partner with global suppliers. Our global manufacturing footprint consists of 59 manufacturing sites and nine sales offices across North America, Europe and Asia. Our strategically located facilities have enabled us to grow our business by leveraging our customer relationships across multiple geographies and products, and drive incremental growth through our ability to integrate and improve our customers’ supply chains.

The company intends to use the net proceeds from the offering to repay its indebtedness and for working capital and general corporate purposes.