P3 PUBLIC PENSIONS FUND PRIVATIZATION

OTPP Is Said to Near Deal to Buy EQT’s Stake in Packaging Firm

Manuel Baigorri and Kiel Porter

Mon, September 12, 2022 

(Bloomberg) -- Ontario Teachers’ Pension Plan Board, one of Canada’s largest public-sector pension managers, is nearing a deal to buy a stake in specialty packaging company GPA Global from buyout firm EQT AB, according to people familiar with the matter.

OTPP is poised to beat out rival bidders for the stake in GPA, the people said, asking not to be identified because the matter is private. The parties are hammering out the final details of a transaction that could be announced in the next few weeks, the people said.

The Canadian fund and Asian private equity firm FountainVest Partners were among shortlisted bidders vying for the stake, Bloomberg News reported last month. The deal could value the packaging business at about $700 million to $800 million, people familiar with the matter have said.

While discussions are at an advanced stage, they could still be delayed or fall apart, the people said. Representatives for OTPP and Stockholm-based EQT declined to comment.

GPA, founded as Green Packaging Asia in 2007, makes premium packaging for items including electronics, beauty products, cannabis, wine and spirits, according to its website. It has manufacturing sites across North America, Europe and Asia. EQT bought a co-controlling stake in the business in 2017 for an undisclosed amount, with the business co-founders remaining as majority shareholders after the transaction.

OTPP, which has set a target of $300 billion in net assets by 2030, has made similar acquisitions in the past. It bought a stake in packaging firm Logoplaste from Carlyle Group Inc. last year for an undisclosed amount.