Despite Growing Global Plastic Pollution, GIC Invests in Altium Packaging
Posted on 03/12/2021
More than 180 nations agreed in 2020 to place strict limits on exports of plastic waste from wealthier nations to poorer countries. However, January 2021 trade data shows that U.S. exports of plastic scrap to poorer countries have barely changed, while overall scrap plastics exports rose.
New York-based Loews Corporation (NYSE: L) entered into a definitive agreement to sell 47% of Atlanta-based Altium Packaging LLC, a rigid plastic packaging and recycled resin company, to Singapore’s sovereign wealth fund GIC Private Limited. The transaction is expected to close in the next 30 days. Altium’s Envision Plastics recycled resin business is a top supplier of recycled high-density polyethylene in North America.
The plastic packaged company is valued at US$ 2 billion.
Altium Packaging is a packaging solutions provider and manufacturer in North America. The business specializes in customized mid- and short-run packaging solutions, serving a diverse customer base in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, water and beverage/juice segments. Altium Packaging develops, manufactures and markets a wide range of extrusion blow-molded and injection molded plastic containers for target markets. In addition, Altium Packaging manufactures commodity and differentiated plastic resins from recycled plastic materials for a variety of end markets. Altium Packaging leases its corporate offices in Atlanta, Georgia and Omaha, Nebraska. It operates 60 manufacturing facilities located throughout the United States and seven facilities located in Canada, of which 59 are leased and eight are owned. In addition, Altium Packaging utilizes fourteen warehouse facilities, of which twelve are leased and two are owned. Altium Packaging has a significant amount of indebtedness, which requires significant interest payments. On February 3, 2021, Altium Packaging issued a US$ 1.05 billion seven-year secured term loan. The term loan is a variable rate facility which bears interest at a floating rate equal to the London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 2.75%, subject to a 0.5% LIBOR floor. The proceeds were used to pay the outstanding principal balances of its variable rate term loans and lending facility and pay a dividend of US$ 200 million.
In January 2020, Consolidated Container Company changed its name to Altium Packaging. Altium’s name has Latin roots meaning “peak of excellence”.