Adamantem Capital is bidding to acquire Close the Loop Group, offering a 49 per cent premium on the 30 day share price for the $220m a year business, with Close the Loop directors recommending shareholders accept the takeover offer.
Close the Loop is also realigning its board, as its North American operations take greater importance. CEO Joe Foster, chairman Greg Toll, and CFO Marc Lichtenstein have all resigned their board positions, with the company now looking for a US-based CEO, and an IT focused chairman.
Foster will remain with the company, as chief operating officer. He said, “Essentially the company has outgrown the board. We needed a CEO who is market-facing, and who will take the business to the next level.
“I am looking forward to the new role, I’ve always been a hands-on guy, I am excited about the future.”
Foster’s business partner Lawrence Jaffe is interim CEO, and will step aside when the new CEO is appointed.
Close the Loop Group includes OF Packaging and 14 other operating businesses, focused on flexible packaging, recycling and IT refurbishment, across Australia South Africa, Europe and North America.
Adamantem is already in the packaging sector, 18 months ago it acquired PAC Trading, a wholesale food packaging supplier which is focused on sustainable packaging and food services through its GreenMark line with bamboo crockery and utensils.
Close the Loop was first listed on the ASX three years ago, since when it has grown its revenue from $71m to $219m and its NPAT from $6m to $26m. It bought Texas-based ISP Tek Services last year, paying $US66m to acquire the IT refurbishment company.
Close the Loop now has more than 3000 shareholders, up from 825 when was it listed. The board and senior management hold around 40 per cent of the shares.
