Gpack returns to a performing position

The transaction structured by Oxy Capital and illimity has made it possible to refinance Gpack's residual debt and has enabled the early exit from the 182bis Restructuring Agreement of 2021.

illimity Bank and Oxy Capital, controlling shareholder of Gpack, have structured a new loan transaction worth €23 million, in addition to confirming a €15 million factoring line in favour of Gpack, a leading company in the paper packaging sector for the luxury, cosmetics, food & beverage, and pharmaceutical markets. The transaction made it possible to bring forward Gpack's exit from the 182 bis Restructuring Agreement approved in 2021, through the refinancing of the entire existing debt, and to provide adequate funding for the growth expected over the coming years.

Founded by the Bramucci family in 1994, the Company grew rapidly in the period 2013-2019, largely as a result of external growth and by making use of leverage; however, starting from 2020 it had to contend with falling profitability, also linked to the impact of Covid-19 on the reference markets, and it therefore initiated a restructuring process. Oxy and illimity supported Gpack in this process, from the initial phases to the finalisation of the Restructuring Agreement.

The recovery plan

Specifically, in 2021, Oxy Capital acquired control of the Company's capital, overhauled its management and launched an in-depth corporate turnaround that made it possible for the Company to specialise in the luxury packaging segment (perfumes, cosmetics and beauty). This led to an increase in turnover from €55 million in 2020 to approximately €90 million expected for 2024, and an increase in EBITDA from roughly €2 million in 2020 to over €14 million estimated for the current year. Meanwhile, illimity supported the Company by disbursing new funding of €14 million between 2020 and in 2021 and granting a factoring line of €15 million to the Company in 2020 as part of emergency finance.

Thanks to these interventions, Gpack recorded results well above the forecasts of the 2021 business plan, thus establishing the prerequisites for launching a new phase of development and growth. The new loan transaction confirms the completion of the relaunch process undertaken by the Company, currently completely redeveloped and financially sound, and above all provides a solid basis for taking advantage of new opportunities.