The sale of Close the Loop to private equity fund Adamantem has not yet gone ahead, and the period of exclusivity, which was extended by a month, has now passed.
Close the Loop is now open to offers from any other potential buyers.
Adamantem is continuing with its due diligence, and discussions between the two parties are continuing, however, the Close the Loop directors say there is “no certainty” that the parties will enter into binding documentation, “nor that a transaction of any kind will materialise”.
The private equity fund aimed to buy 100 per cent of the $220m-a-year Close the Loop group, offering 27c a share, which at the time of the offer on 21 November represented a 49 per cent premium on the rolling 30-day average.
The proposed deal represented a major step forward for the rapidly growing business, which is also realigning its board, as its North American operations take on 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.”
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 in March 2023, 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.
