For R$ 671.2 million, an amount equivalent to US$ 247.6 million, Dixie-Toga packaging material, a Brazilian company, sold yesterday its operations to the North American Bemis Company, one of the industry leaders worldwide, in a deal carried through in record time (one month). As a consequence of the deal, one of Brazil´s leading entrepreneurs, Sergio Haberfeld, 61, a strong advocate of nationalism and one of the first industry leaders to support the president candidate Luiz Inácio Lula da Silva, is stepping aside from its command and corporate life. "Everything can be sold, but your wife and children. I have done so because I was already tired, and I do not know if I would be able to bear another cycle of investments and expansion of the company. I have already removed my things out of the office. I will take care of my zoo ", said yesterday Haberfeld, in his office, - calling himself “retired”.
This is the leading business of Bemis until today. The group purchases range every year between one and three companies worldwide. Haberfeld, Klabin and Schalka – the owner families are already since yesterday out of the business and resources related to the sale already have already been paid, "cash". In addition to the announced amount (US$ 247.6 million) another US$ 6 million will be either added to or subtracted from this sum due to purchasing clause and sales agreement that foresees an adjustment of the total value of the deal based on its actual performance in 2005.
The new owners say that they do not intend to restructure the Company internally, and that they do not have any dismissals planned. The group has 3.6 thousand employees in Brazil and in Argentina - where it owns a plant. Dixie-Toga’s net sales revenues amounted in 2004, until the month of September, to R$ 722.4 million - a 16.4% increase when compared against the same period in 2003. The profit showed a 71.4% leap. Indebtedness is low. The last financial statements of the publicly traded company have shown a net debt of R$ 39.9 million in September – The same debt had amounted one year before to R$ 112 million.
The sale was conducted as follows: the Americans bought from the respective families 99,9% of the common shares of the group (with right to vote), equivalent to 191 stocks. They have paid for each stock R$ 3.17 million. The company has also acquired 42.5% of the preferred stocks (without right to vote). This corresponds to 45 million shares for the value of R$1.42 million each. In total, the operation sums R$ 671.23 million. In dollars, this amount corresponds to US$ 247.68 million.
With this, Bemis became the major shareholder of the packaging material group with 79.4% of Dixie’s total number of shares. The American manufacturer already held 45% of the company’s capital, through a joint venture formed in 1998. The remainder of the preferred stocks are yet to be negotiated with the other owners who are in the market. While Bemis says that it will discuss the acquisition, it does not speak of terms. "We did not buy the company to resell it in pieces. We neither fire people nor reorganize the company. We came to Brazil to be here for years and years and this is how it will be. " Said yesterday Wulf Gene, Vice-president of the Group.
Sergio Haberfeld says that he leaves the business, he started to command at the age of 33, because he is "fed up ", he says. "I have sold it, because the new owners will continue the business, and because I would not have sold it to an investment bank, that would destroy the company and sell the small pieces of it ", he says. " I have promised my wife, I would be more with her, and I will take care of my small zoo, of my animals, and I am going to start an NGO, who knows... " |
