Compostable resins, films, bags and custom finished products providers Cardia Bioplastics has announced a merger with Australian privately held Stellar Films Group to create a leader in sustainable packaging.
Cardia Bioplastics will acquire all of the shares and units issued in Stellar Films and issue ordinary shares in Cardia Bioplastics to the owners of Stellar Films. Post completion, Cardia will own 42% of the merged group and the owners of Stellar Films will own the remaining 58%.
The merger will be completed after due diligence by both parties, execution of a sale agreement, shareholder and regulatory approval and other customary closing conditions.
Previously, the two companies partnered to produce Biohybrid films which are eco-friendly, high quality and cost competitive and tailored for the global personal care and hygiene products industry.
The product is differentiated through its unique soft touch and warm feel that is best suited for personal care product applications like nappies/diapers, feminine or incontinence products.
Speaking about the merger, Cardia Bioplastics chairman Richard Tegoni said: "The Cardia Bioplastics Board is excited about the intended merger with Stellar Films Group, a business that will complement and strengthen our Cardia Bioplastics business in its product offering, market position and global reach.
"The combined business has the scale and resources to deliver the successful implementation of our profitable business growth strategy in our carrier bags, films & packaging, and waste management target market segments. We look forward to working with the Stellar Group Board and management to bring the merger transaction to a successful conclusion."
Cardia Bioplastics shareholders will hold a meeting in early 2015 regarding the merger.
