The article speaks for itself. Ruffy has used the cash to refinance the PACT Group at 5 X EBITDA.
I knew he had leveraged himself over the past few years.
He has also lost a number of reasonably sized contracts which will hurt his bottom line.
As multinationals and Pharma companies go off shore the volume is lost locally.
I suspect Ruffy is stabalising the PACT group for his next endeavour. He was looking in both the US and Asia where growth and volumes are huge!
PPG is just a play thing for him and I suspect what we will see is that PPG will decide to divest its Bottle & Cap manufacturing & focus on their growth and core being distribution. The bottle and Cap manufacturing will fit neatly in one of PACT groups under utilised plants.
So I do not believe Ruffy has a strategy to buy PPG.
PPG Price at posting:
49.5¢ Sentiment: Hold Disclosure: Held
