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French luxury beauty packager Texen SAS plans to merge with Quadpack Industries SA in a take-private deal that values the Spanish rival at €140 million ($153 million), the companies announced on Monday.

PSB Industries, a private company and the owner of Texen, is offering €32 per share for Quadpack, which develops, manufactures, and markets packaging for the cosmetics industry. This offer values Quadpack, headquartered in Barcelona, at approximately €140 million.

Shares in Quadpack, which is listed on the Euronext Growth market in Paris, were trading at €16 midafternoon on Monday, a 21.21% leap from €13.20 at Friday's close. PSB Industries said that Quadpack will quit the growth market if the deal is completed.

Packager Texen to merge with Quadpack Industries : Terms of the Deal

The terms of the deal stipulate that PSB Industries will buy all of Quadpack's shares. This includes 77.66% of the stock held by its founders, which will be exchanged for newly issued shares in PSB Industries and cash. This arrangement will allow the founders to become shareholders in the enlarged company and "remain involved in the future development and growth of the new group," the companies said.

The companies stated that the merger will catapult the combined group to being among the top five cosmetics packaging companies in the world. They project the enlarged group will have combined sales of approximately €350 million and 2,000 employees.

Merger Implications

The deal is subject to Quadpack's shareholders approving a capital reduction. Notably, the deal is not subject to any regulatory approvals. The companies expect the deal to be completed by October.

Counsel information for the parties was not immediately available.

Packager Texen to merge with Quadpack Industries : Texen's Market Position

Texen creates beauty packaging for luxury customers, including Guerlain and Burberry. With this merger, the combined entity will have a stronger presence in the luxury beauty packaging market, enhancing its competitive edge and expanding its global reach.

Conclusion

The merger between French luxury beauty packager Texen and Spanish rival Quadpack Industries marks a significant move in the cosmetics packaging industry. This deal not only highlights the strategic ambitions of both companies but also sets the stage for the creation of a leading global player in the sector.