New York-based special purpose acquisition company One Madison Corp has agreed to merger with Ranpak Corp, paper packaging materials affiliates of private equity firm Rhône Capital.
One Madison Corp will acquire Ranpak for $950 million in cash, including the repayment of existing first lien and second lien debt. Ranpak will use the net proceeds to execute its growth plans, including innovation, geographic expansion and product line extension.
The company expects to fund the deal with cash held in its credit trust of $300 million, approximately $407 million of debt drawn from $650 million of committed new debt financing available to fund the transaction and related expenses on the closing date and about $292 million of committed equity investments from its anchor investors.
As a result of the transaction, One Madison will combine with Ranpak to identify growth opportunities, deliver its global network of industrial and consumer relationships, and provide access to its dedicated and experienced merger and acquisition team to assist in sourcing and executing acquisitions.