01.20.10
SGD Group, a global manufacturer of high-end glass containers for the perfume and pharmaceutical industries, and Oaktree Capital Management Ltd., have announced that they have reached a unanimous agreement with all stakeholders to strengthen the financial structure of SGD and massively decrease its debt. The agreement was also approved by the French legal authorities.
The agreement anticipates Oaktree taking a majority stake of as much as 80% in SGD, with the remaining 20% being held by a pool of creditors.
This agreement also entails: a 63% write-off of SGD Group’s debt to €225M; an increase in shareholders’ equity of €40M; the arrangement of a €100M credit line, confirmed and available for seven years; and possible additional financing of a further €90M.
Consequently, SGD is immediately launching a €293 million, five-year investment plan aimed at renewing the company’s industrial equipment and investing massively in quality on all its production sites in France and worldwide (Spain, Germany, United States, Brazil, China).
Following this strong recapitalization, SGD Group, based in Paris, France, intends to reassert its global leadership in a high potential sector.
Thierry Dillard, chairman and CEO of SGD, said: “SGD is creating the means to achieve its ambitions. The entire company is now rallying together to win back and develop its historical markets. SGD wishes to ensure the continuity of both the level and reputation of quality, which have been the hallmark of the company’s international success among its clients in the perfumery, cosmetics and pharmaceutical sectors since its foundation by Henry Desjonquères in 1896.”
Matthieu Guillemin, Oaktree France’s CEO, declared: “We believe in the future of SGD and we support the plan proposed by the management, which relies on a profound industrial transformation. Our teams have extensive industrial experience and will be mobilized to carry out this ambitious development in the long term.”
The agreement anticipates Oaktree taking a majority stake of as much as 80% in SGD, with the remaining 20% being held by a pool of creditors.
This agreement also entails: a 63% write-off of SGD Group’s debt to €225M; an increase in shareholders’ equity of €40M; the arrangement of a €100M credit line, confirmed and available for seven years; and possible additional financing of a further €90M.
Consequently, SGD is immediately launching a €293 million, five-year investment plan aimed at renewing the company’s industrial equipment and investing massively in quality on all its production sites in France and worldwide (Spain, Germany, United States, Brazil, China).
Following this strong recapitalization, SGD Group, based in Paris, France, intends to reassert its global leadership in a high potential sector.
Thierry Dillard, chairman and CEO of SGD, said: “SGD is creating the means to achieve its ambitions. The entire company is now rallying together to win back and develop its historical markets. SGD wishes to ensure the continuity of both the level and reputation of quality, which have been the hallmark of the company’s international success among its clients in the perfumery, cosmetics and pharmaceutical sectors since its foundation by Henry Desjonquères in 1896.”
Matthieu Guillemin, Oaktree France’s CEO, declared: “We believe in the future of SGD and we support the plan proposed by the management, which relies on a profound industrial transformation. Our teams have extensive industrial experience and will be mobilized to carry out this ambitious development in the long term.”
