The group, which is specialised in the manufacturing and sale of large plastic containers aimed for food and targeting the retailing and distribution industry, finances itself in order to innovate.
The group Schoeller Arca Systems is a world leader in the plastic packaging market. It mainly supplies the IFCO group, specialised in logistics relating to fresh food transport from producers to distribution networks. One Equity Partners (investment fund managing JP Morgan Chase & Co’s assets) is the majority shareholder in Schoeller Arca Systems.
In order to be able to ensure the production of third generation reusable stack containers, which specific feature is to contain an innovative and patented locking device, Schoeller Arca Systems had recourse to parallel financing as a result from the contraction of the debt market in terms of risks relating to this kind of assets.
In this tight market situation, the group financed itself up to 43.5 billion Euros with Haymarket Financial LLP, an investment fund principally operating in the London market, by means of a company incorporated for the purposes of this transaction in Ireland. This borrowing company, which became he owner of the production equipment and the moulds required for the manufacturing of the new generation storage containers, signed leasing and productions agreements with entities of the group Schoeller Arca Systems in Europe and the United States. Machines and moulds are located in five European countries and in the United States. Haymarket Financial LLP’s interests are secured by a shareholder’s guarantee as well as securities on almost all the industrial estate thus financed.
In this complex transaction, the strategic issue consisted in reconciling an “operational leasing” accounting qualification (Dutch GAAP) with a “true lease” legal qualification in the relevant American jurisdictions in order to provide Haymarket Financial LLP with the best protection possible.
Like other actors principally intervening in the corporate and acquisition debt market, Haymarket Financial LLP positioned thanks to this transaction in the asset financing market, which is characterised by the assessment of risks arising from the financed asset and the nearest positioning of the ownership of the said asset.
The group Schoeller Arca Systems was advised by de Gaulle Fleurance & Associés with respect to international leasing issues and the coordination of all parties in various jurisdictions. Latham & Watkins advised Schoeller Arca Systems with regards to the corporate financing implemented in 2007.