GEREJE CORPORATE FINANCE advises LBX Asia, leading trader of reusable bags, in its sale to AMIQUAR

GEREJE has successfully supported the shareholders of Asia-based LBX groupleading reusable bags provider, to prepare and optimize their sell process to the French industrial group AMIQUAR.

This deal will enable LBX to accelerate its penetration of new markets while offering to AMIQUAR a strategic foothold in Asia, and a way to optimize its production capacities. Asia remains dominant for global production, driven by its fast industrialization and high demand from China, India and Japan.

LBX group boasts a real know-how in both on-site quality control within its factories in Asia, and optimizing logistics between Asia and their main markets (Europe, Africa and South America). This know-how gives them the capacity to deliver “tailor-made” products to their clients in a quick and reliable fashion, while ensuring optimal quality.

According to Deloitte, sustainable packaging market is to grow consistently by 6.5% annually until 2024. This industry has seen a record number of transactions in 2017 with 307 deals vs. 294 in 2016 (PMCF index), based on average EBITDA multiples between 6x and 9.5x for the past 5 years (PCE report).

Fabrice LOMBARDO, Founder & CEO of GEREJE, said: “Even for a healthy and growing company like LBX, a sell operation requires shareholders to be prepared and supported on a daily basis, to enable them to focus on their business and thus optimize financial results for the closing phase. I would also like to emphasize the importance of deal structuring which, by taking into account the different expectations from each of the two shareholders, made us close the deal successfully. We also thank our partner Jean-Pierre CHOUVET from EURALLIA Finance, who introduced us to the buyer. Finally, I want to pay tribute to the professionalism of Thierry GOUGY, M&A lawyer from the firm CMD Avocats, whom we recommended to our client and who played an important part in the success of this deal.”

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