SIG Agrees to Buy Packaging Maker Scholle for $1.2 Billion

(Bloomberg) -- Swiss juice-box maker SIG Combibloc Group agreed to buy Scholle IPN, the biggest maker of bag-in-a-box packaging systems for liquids, for 1.05 billion euros ($1.2 billion).

SIG said Tuesday it will pay for the closely held company with a mixture of shares, cash and debt refinancing. The enterprise value of the deal is 1.36 billion euros.

SIG is one of the world's leading makers of aseptic packaging, which keeps foods and beverages sterile and lengthens their shelf life to as long as a year. The acquisition is the company's largest since holding an initial public offering in 2018.

Scholle had 2021 revenue of 474 million euros, and the deal should boost earnings from the first year after completion. The deal increases SIG's exposure to the U.S. food and beverage market.

SIG will pay with about 720 million Swiss francs ($778 million) worth of shares and 370 million euros in cash.

UBS Group AG was SIG's financial adviser.

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