3i Group is to sell its investment in Weener Plastics, a plastic packaging provider, to Silgan Holdings. Proceeds to 3i are estimated to be around £283m, which represents an approximately 21% uplift on its 31 March valuation.
Including the £45m of proceeds already received, this represents a 2.2x return on invested capital, according to a press statement.
WP designs, develops and manufactures caps and closures, deodorant sticks and roll-ons, and other packaging for the personal care, food and beverage, home care and healthcare industries.
3i invested in WP in 2015 and has supported its expansion into new product categories such as pharmaceutical packaging. During its investment period, WP also made four bolt-on acquisitions in Latin America and Europe, as well as almost doubling its EBITDA under 3i’s ownership, according to the statement.
The transaction is expected to complete in early Q4 2024 and is subject to customary closing conditions and regulatory approvals.
Barclays, William Blair International and Willkie Farr & Gallagher are advising 3i.
