Perfume packaging maker SGD restructures
The company, which also supplies the pharmaceutical industry, has struck a funding agreement with Oaktree Capital, which will strengthen its financial structure and significantly decrease its current debt load.
“SGD is creating the means to achieve its ambitions… to ensure the continuity of both the level and reputation of quality, which have been the hallmark of the company’s international success,” said Thierry Dillard, CEO of SGD.
Prestige market focus
The company concentrates on supplying glass flacons, mainly for prestige cosmetic and fragrance products. Most recently it launched its Verre Infini line, a 100 per cent recyclable collection of flacons.
Before the restructuring initiative can go ahead, the plan has to first be approved by French legal authorities, which can take several months.
The agreement means that Oaktree will take a majority stake in the packaging provider of 80 per cent, with the remaining 20 per cent stake being shared amongst s pool of shareholders.
Reducing debt and investing in production
It will also mean that SGD’s existing debt will be reduced by 63 per cent to €225m, shareholder equity will be increased to €40m and an additional credit line of €100m will be available, with the possibility of further financing of up to €90m.
The initiatives frees SGD up to launch a five-year €293m financing plan that will allow it to renew industrial equipment and invest in a number of other areas to increase quality at its production sites throughout France, as well as Spain, Germany, the US, Brazil and China.
Ultimately the initiative aims to reaffirm and reinvigorate the company’s position in the global landscape for glass packaging, an area that is said to still hold significant potential for further growth.
