CKI courted to buy Goodpack for US$2bn

Business | Reuters 20 Nov 2019

KKR & Co has tapped Hong Kong's CK Infrastructure (1038) and buyout groups including Blackstone and Sweden's EQT AB to gauge buying interest for Singapore-based Goodpack, an intermediate bulk container maker, multiple sources with knowledge of the matter said.

Working with advisors, private equity group KKR has reached out to more than a dozen potential buyers as it seeks bids for a deal that could give Goodpack a valuation of at least US$2 billion (HK$15.6 billion), the sources said.

If successful, this would rank as one of the largest PE-backed sales in the past few years in Asia, excluding Japan and Australia, according to data from Refinitiv.

The names of the potential bidders have not been reported previously. The sources declined to be identified as they were not authorized to speak to the media.

"There are a lot of parties looking at this high-profile auction. This is not a small and cheap deal, so people are keen to do a lot of work on this one," said one banker familiar with the sale process.

Indicative bids are due in early December, they said.

KKR acquired Goodpack for about S$1.4 billion (HK$8.06 billion) in 2014 and delisted it from Singapore Exchange. Since then, Goodpack changed its senior management, expanded into new markets such as food and chemicals and opened new offices in Europe and the United States.

One source said KKR was seeking a price above US$2 billion, given the rise in valuations of infrastructure assets in the past few years and Goodpack's expansion.

Goodpack caters to global customers in the rubber, chemical, automotive and food-processing sectors. It has a fleet of four million steel intermediate bulk containers, with operations across 80 countries and a network of about 5,000 delivery and collection points.

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