Qbrc to back right buyer for glass plan

Members of QBRC, the group set to takeover the former Quinn Manufacturing group in the coming weeks, will also have a key say in who buys the former Sean Quinn-owned glass production business, currently in the midst of a bidding process.

QBRC’s takeover of the former Quinn manufacturing group (CIS), and the packaging businesses, is expected to be completed by November 29. But, QBRC’s non-executive members will also now have an input in the sell-off of the glass element of the former Quinn empire - recently rebanded as Encirc.

The news comes following the release of a joint statement from QBRC and Aventas, who sought to clarify their position given recent speculation regarding the progress of QBRC’s purchase of CIS and the packaging businesses.

Up to nine bids have been received to date for the two glass production plants, in Ballyconnell and Cheshire, which provides employment for up to 1,000 people.

 

Key role

The statement says though that the non-executive team backing the CIS and packaging buyout will be involved in engaging “with all stakeholders” in respect of the Encirc sales process.

It puts businessmen John McCartin, John Bosco O’Hagan and Ernie Fisher in a potentially key position when it comes to deciding who eventually buys the former Quinn Glass business.

The non-executive QBRC Board members though stress they will support any prospective bidder to Encirc, so long as the buyer is able commit to invest in the business in the long term, as well as both secure and support local employment.

Investment bank Lazard is reviewing the bids, which are from a mixture of private equity and international trade investors, in order to move to the next round.

It is understood that none of the bidders currently have significant glass interests in Ireland or the UK.

 

CIS & Packaging buy-out

CIS and the packaging businesses meanwhile will be led by Liam McCaffrey, former Quinn Group chief executive, former Quinn Group financial director Dara O’Reilly and former Quinn development director Kevin Lunney.

In the statement released earlier this afternoon (Wednesday, November 12), the companies said that QBRC has just completed a round of intensive discussions with Aventas’ senior management and their financiers.

“All outstanding commercial items have been agreed and the drafting of the final legal documentation is nearing completion,” it read.

“The CIS and Packaging businesses have significant potential for further growth given their strong asset base and their position in growing markets. The QBRC executive team, which includes members of the former Quinn management, is looking forward to completion and will be solely focussed on growing and developing the CIS and Packaging Businesses.”

 

The full statement reads:

“Following recent speculation regarding progress on the QBRC transaction to acquire the Construction Industry Supply (CIS) and Packaging businesses, as well as the on-going sale process in relation to the Encirc glass business, we thought it useful to clarify the current agreed position between us.

“QBRC has just completed a round of intensive discussions with Aventas’ senior management and their financiers. All outstanding commercial items have been agreed and the drafting of the final legal documentation is nearing completion. All parties will work to have the documentation executed to facilitate the QBRC management team taking over the running of the businesses from the weekend of 29th November.

“The CIS and Packaging businesses have significant potential for further growth given their strong asset base and their position in growing markets. The QBRC executive team, which includes members of the former Quinn management, is looking forward to completion and will be solely focussed on growing and developing the CIS and Packaging Businesses.

“All parties recognise the critical importance of each of the two Encirc facilities to each other. Consequently, we are all fully committed to the objective of achieving a sale of Encirc to a financially strong buyer who, in turn, is committed to investment in the medium term, to the longer term development of both facilities and to continuity of employment in Encirc. The QBRC non-executive Board members will engage with all stakeholders in respect of the Encirc sales process to ensure an environment where this objective can be achieved.

“The Encirc glass plants will continue to benefit from their leadership position in all aspects of manufacturing and service delivery in the glass industry. In addition, when completed, the proposed new natural gas pipeline will improve the cost competitiveness of the Derrylin plant which will in turn help support and sustain its long term future.

“We therefore believe that both of these transactions, when complete, will drive forward a new era of growth and success for the businesses providing a significant economic benefit, especially to the local areas.”