One Madison Corporation to combine with Ranpak
Ranpak's growth momentum stems from global expansion in e-commerce and the increasing focus on environmentally sustainable solutions.
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One Madison Corporation (OMAD), a special purpose acquisition company, has signed a definitive agreement with affiliates of Rhône Capital to combine with Ranpak Corporation.
This transaction will introduce Ranpak as a publicly listed company with an anticipated enterprise value of approximately $1 billion. Upon the closing of the transaction, OMAD will be renamed and will remain NYSE-listed under a new ticker symbol.
Ranpak is a global leader in fiber-based, environmentally sustainable protective packaging solutions that safeguard products in commerce and industrial supply chains. Ranpak utilizes a systems-based business model to drive recurring revenue through an installed platform of more than 90,000 machines. Through this platform, Ranpak sells value-added consumables to end-users via a network of exclusive distributor relationships, delivering services to approximately 30,000 diversified end-users in over 40 countries. Ranpak’s revenue from recurring customers and customer retention rates are both in excess of 90% over the past five years.
Ranpak achieved a consistent average annual revenue growth rate of greater than 7% over the past five- and 15-year periods (adjusted for constant currency), while maintaining Adjusted EBITDA margins of greater than 30%. Ranpak expects to continue this strong performance by targeting revenue growth of 8% in 2019 and Adjusted EBITDA of $95 million.
Ranpak is positioned to maintain its organic growth momentum from global expansion in e-Commerce and the increasing focus on environmentally sustainable solutions by both distributors and end-users. Approximately one-third of Ranpak’s sales are derived from e-Commerce, a market that has expanded at more than a 20% compound annual growth rate in recent years. Ranpak’s proprietary solutions and 100%-natural consumable product offering provide customers with a clear value proposition in supply chain management and product protection.
“Sustainability is real and here to stay. Customers and consumers demand eco-friendly solutions for product protection in both traditional supply chains and e-Commerce,” said Omar Asali, Chairman and Chief Executive Officer of One Madison Group. “Ranpak has a tremendous opportunity to capitalize on trends including increased environmental awareness and global growth in e-Commerce. We applaud Ranpak’s management and employees on the business they have built and look forward to working together with them to take Ranpak to the next level.”
Following the transaction, the One Madison team will work closely with Ranpak to identify growth opportunities, deliver its global network of industrial and consumer relationships, and provide access to One Madison’s dedicated and experienced M&A team to assist in sourcing and executing acquisitions. Furthermore, this transaction will provide additional financial resources to execute Ranpak’s growth plans, including innovation, geographic expansion and product line extension.
“We are pleased to welcome One Madison as our new long-term strategic owner,” said Mark Borseth, president and CEO of Ranpak. “Omar and his team embrace our products and business strategy and the importance of continuing to lead in environmental sustainability, particularly in e-Commerce. We look forward to working closely with the One Madison team to combine their capital allocation expertise and deal-making acumen with our unique asset-light distribution model, track record of innovation, and industry-leading position to expand our customer base, product offering, and geographic reach.”
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