It has been reported in the Irish press that US private equity house Madison Dearborn Partners has reached an initial agreement to buy Powerflute less than a year after failing at the first attempt. Finland-based Powerflute — founded and chaired by Dermot Smurfit — has said that an agreement has been reached that is set to see Madison Dearborn, (via its affiliate company Nordic Packaging and Container), acquire the business for around £268 million (€315m).
Madison Dearborn failed in an initial bid for Powerflute last December, when it tabled an offer of around £261 million for the company. However, talks between the two parties, reportedly, resumed in April. Mr Smurfit and his brother Michael own close to 28 per cent and are being offered 80p per share for their holdings. The remaining (non-Smurfit family) shareholders are being offered 90p per share.
