Soarus

The Company

OC, Inc (OC) is a holding company with a 50 percent joint venture interest in Soarus LLC (Soarus), the exclusive North American sales, marketing, and technical support company for Japan-based Nippon Gohsei Ltd.’s ethylene vinyl alcohol copolymer (EVOH) product, Soarnol.® Soarus is a joint venture between OC and Nippon Gohsei, the manufacturer of Soarnol. EVOH is a resin most commonly used in various types of food packaging, where gas barrier properties are critical. Applications for Soarnol include multilayer flexible films, bottles, thermoformed trays and cups, flavor scalping resistant juice cartons and bottles, and multilayer squeezable tubes.

The Situation

OC was in discussions to sell a portion of its ownership stake in Soarus to its joint venture partner, Nippon Gohsei, and required assistance in arriving at a fair market value for Soarus.

The Transaction

KPMG Corporate Finance was retained as valuation adviser to OC. In this role, KPMG Corporate Finance performed a valuation of Soarus and assisted in negotiations with Nippon Gohsei. KPMG Corporate Finance fielded a U.S.-Japanese team on this assignment.