Dublin and Toronto-based company IPL Plastics has been bought by Intelligent Packaging Limited, an entity controlled by Chicago-based private equity firm Madison Dearborn Partners.
The transaction values IPL Plastics at $555m (Canadian) on an equity basis and at $981m on an enterprise basis.
IPL Plastics - formerly known as One51 - manufactures a range of plastic products, from food containers to wheelie-bins.
Under the terms of the deal - and subject to shareholder and other customary approvals - Intelligent Packaging will pay $10 in cash per share of all of the issued and outstanding common shares the company.
This represents a 49% premium to yesterday's IPLP closing share price and a 153% premium to the closing price on May 15, the last trading day before media reports concerning a potential acquisition.
The company had created an independent Special Committee in response to various confidential enquiries and unsolicited preliminary proposals from North American and European private equity sponsors for the company.
That Special Committee is chaired by Rose Hynes and includes Sharon Pel and Hugh McCutcheon.
Rose Hynes, Chair of the Special Committee, said it had concluded that today's deal is in the best interests of IPL Plastics and fair to its shareholders.
"With a view to maximizing shareholder value we conducted a thorough assessment of MDP's proposal, as well as other alternatives reasonably available to the company, including the status quo," Ms Hynes said.
"Following this comprehensive assessment and our extensive negotiations with MDP, we are pleased to have reached an agreement that provides immediate and fair value to shareholders and includes significant procedural safeguards that protect minority shareholders," she added.
