Clayton, Dubilier & Rice is to sell Mauser Group, a supplier of industrial rigid packaging products and reconditioning services, to Stone Canyon Industries (SCI) in an all-cash deal valued at USD2.3 billion.
SCI, through its subsidiary BWAY Corp, manufactures rigid metal and plastic containers.
“Mauser is an exceptionally well-positioned business that has delivered strong and consistent performance under our ownership,” says CD&R partner David Novak. “We believe that this transaction will benefit the market position and long-term growth prospects for both companies and prove to be rewarding for their employees and valued customers.”
Under CD&R’s ownership, Mauser achieved a number of important operational milestones, resulting in 9 per cent per annum revenue growth and 15 per cent per annum EBITDA growth. With 4,500 employees Mauser operates more than 100 manufacturing facilities in 88 strategic locations across 18 countries in Europe, North America, South America and Asia, serving more than 12,500 customers.
“We are proud of our association with the talented Mauser management team led by CEO Peter Schaefer,” says CD&R partner Sonja Terraneo. “Working closely together, we not only drove operational excellence, but also pursued valuable new growth avenues and service offerings. CD&R remains strongly committed to investing in and supporting the growth of leading German-headquartered businesses.”
“Mauser has focused on driving strong, sustained revenues in attractive market segments with high growth potential,” says CD&R operating partner Vindi Banga, chairman of Mauser. “In particular, the reconditioning services segment has enabled the company to provide ecological, economical, and socially responsible solutions to help customers both reduce costs and meet critically important sustainability requirements.”
“With today’s announcement, Mauser has achieved a new milestone which represents a strong validation of our growth strategy and opportunity to build additional value for employees and customers alike,” says Peter Schaefer, CEO of Mauser Group. “Together with BWAY, we will have a unique opportunity to continue our strong growth momentum.”
Ken Roessler, BWAY’s president and chief executive officer, says: “We welcome all of the Mauser employees to the SCI family. We look forward to working with Peter Schaefer and the Mauser management team in bringing together two great companies in the packaging and container industry. In addition to sales growth, this acquisition expands our product offering with innovative new products, which further support the company’s position as the premier supplier for rigid general line packaging.”
Bank of America Merrill Lynch acted as lead financial adviser, Citigroup acted as financial adviser, and Latham & Watkins provided legal counsel to CD&R. Goldman Sachs acted as financial adviser and Gibson, Dunn & Crutcher provided legal counsel to SCI.
