KKR has emerged as the preferred bidder for Portuguese packaging company Logoplaste after rival Apax Partners withdrew from the auction to acquire the business in a potential deal worth more than €1.7bn including debt, according to a report by Bloomberg.
The US private equity firm is now reportedly in exclusive discussions with the Logoplaste’s owners, with report citing unnamed people familiar with the matter as suggestugbn that a deal could be agreed in teh coming weeks. Discussions though, remain ongoing and there is no guarantee that an agreement will be reached.
Ontario Teachers’ Pension Plan Board, which owns 60% of Logoplaste, has been working with advisers on the sale. The Canadian pension investor acquired its majority interest from Carlyle Group in a transaction that valued the company at about €1.4bn including debt.
Logoplaste chairman Filipe de Botton, a member of the founding family, and board member Alexandre Relvas own the remaining 40%. The pair could retain an interest in the business following a transaction, according to people familiar with the process.
KKR and Apax had previously submitted binding offers for Logoplaste as part of a competitive auction.
Representatives for KKR, Apax, Logoplaste and Ontario Teachers’ reportedly declined to comment.
Logoplaste generates around €1bn in annual revenue and operates more than 60 manufacturing facilities across 16 countries. The company specialises in a “wall-to-wall” production model, locating packaging manufacturing operations directly at customer sites.
Its customers include Kraft Heinz, Diageo and L’Oréal, giving the business exposure to large multinational consumer and food-and-beverage companies.
