Valpak has announced proposals for the organisation’s restructuring that have been put forward for agreement by its existing members.
These proposals follow on from an initial offer made by the management team in August 2011, and are a significant improvement for all parties involved – in particular for Valpak’s members and the long term future of the staff within the business. The proposals have been assessed and recommended by the Independent Directors of Valpak.
Under the terms of the new offer:
The management team will own 70% of the business, and Green Point Holdings S.C.A. (“Greenpoint”) will own 30%.
Each of the 4,004 members will receive £340 as an initial consideration (£1.4m in total) which is double the original proposal. A further £270 deferred consideration will be payable to each member (£1.125m in total) if the packaging regulations continue in 2013.
The business will remain focussed on UK compliance to the benefit of its existing members rather than being absorbed into a larger group.
Greenpoint have made £2m capital available for investment in the future development of services and products both in the UK and internationally.
All Valpak staff will be able to share in the future of the business through a share options scheme.
Management have committed not to sell any shares for a minimum of three years.
Greenpoint is the owner of DSD, the principal compliance scheme in Germany, and will bring a wealth of knowledge and experience about operations in other parts of Europe and further afield.
Commenting on the new proposals Valpak’s Chief Executive, Steve Gough, said:
“Since our initial plans in the summer were put on hold, Valpak received a number of expressions of interest for the business. Of all the expressions of interest, the approach from Greenpoint offered the best future structure for Valpak and its members.”
“In particular I am very pleased that as well as offering an improved compensation for members, the revised offer guarantees access to funds that will enable us to develop and invest at a faster rate that we would have been able to do otherwise. In addition we have built in a scheme whereby existing staff will have the opportunity to develop a stake in the future success of the company through a share options scheme.”
As part of the deal Greenpoint will have representation on the Board of Valpak, but the existing Independent Directors will remain to ensure continuity for at least a year.
Mr Gough went on:
“This proposed restructuring, whilst exciting has taken us some time to finalise. We acknowledge the uncertainty this may have caused to staff and to our members, however we are delighted with the result which provides an outstanding platform for Valpak and its staff to develop future services that members will value. We also believe that closer cooperation between the two schemes will allow new services to be developed together for a much wider market. We hope very much that members will support the proposal with their votes.”
Commenting on the deal, Philippe von Stauffenberg from Greenpoint said:
"We are delighted to be involved with Valpak in this very exciting new venture. During our discussions with Valpak we have been very impressed with the quality of their team, and we are looking forward to working closely together in the future. We also want to stress to Valpak members that we believe the UK recycling compliance system works extremely well and should remain in place. We are eager to learn from and apply Valpak’s expertise and experience with the UK system."
Members of Valpak have been sent full details of the proposals today (5th January 2012).