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Cardia Bioplastics plans packaging merger

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Supplier of compostable resins, films, bags and custom finished products Cardia Bioplastics has proposed a merger with privately held Stellar Films Group (Stellar Films).

The merger, should it proceed, is intended to create a leader in sustainable packaging.

The proposed merger is subject to completion of satisfactory due diligence by both parties, execution of a sale agreement, Shareholder and regulatory approval and other customary closing conditions.

Under the terms of the proposed merger, Cardia Bioplastics will acquire all of the shares and units issued in Stellar Films and issue ordinary shares in Cardia Bioplastics to the owners of Stellar Films. Following completion of the proposed merger, it is currently anticipated that Cardia shareholders will own 42% of the merged group and the owners of Stellar Films will own 58% of the merged group.

Cardia Bioplastics and Stellar Films originally partnered to produce environmentally friendly Biohybrid films tailored for the global personal care and hygiene products industry.

The cooperation between the companies over the last three years has illustrated the strategic fit of the two businesses and the major benefits of a merger, including scale and geographic footprint of combined operations, market access and reach, production and operational savings, complementary intellectual property positions, resources to deliver business strategy and high quality management teams.

“The combined business has the scale and resources to deliver the successful implementation of our profitable business growth strategy in our carrier bags, films & packaging, and waste management target market segments,” said Cardia Bioplastics Chairman, Richard Tegoni in a statement.

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