Advent International (Advent), one of the largest and most experienced global private equity investors, is to sell leading Danish food packaging company Faerch to Danish foundation-owned holding company AP Møller Holding. The transaction values Faerch at approximately EUR1.9 billion.
Advent International (Advent), one of the largest and most experienced global private equity investors, is to sell leading Danish food packaging company Faerch to Danish foundation-owned holding company AP Møller Holding. The transaction values Faerch at approximately EUR1.9 billion.Faerch is a pan-European packaging company, headquartered in Denmark, that holds leading positions in sustainable rigid packaging solutions for the food industry. The company has over 50 years of experience in developing, designing and producing innovative and high-quality packaging solutions in ready meals, food-to-go, dairy and fresh meat segments. Faerch is a pioneer in integrated tray recycling and leads the industry’s efforts in making food packaging circular with a clear product focus on recyclable mono-PET solutions.
Advent acquired Faerch in August 2017 and since then has supported the company’s growth through product innovation and the expansion of its European footprint by a number of strategic add-on acquisitions. Under Advent’s ownership, the company has taken the lead in the transition from rigid food packaging towards circularity and pioneered tray-to-tray recycling at an industrial scale, with the world’s first tray recycling line in the Netherlands. Since 2017, the company has increased its revenue by more than 60 percent with revenues exceeding cEUR500 million in 2020 and continues to enjoy industry leading margins.
The Danish foundation-owned holding company AP Moller Holding is a long-term investor committed to building businesses with a positive impact on society. AP Moller Holding’s diverse portfolio includes companies like AP Moller – Maersk, Danske Bank and KK Wind Solutions. The holding company will support Faerch in the next phase of its growth by scaling its unique tray recycling capabilities across Europe, accelerating the transition towards mono-PET solutions in Faerch’s core market segments and pursuing further consolidation through M&A activities.
Ranjan Sen, Managing Partner at Advent International, says: “We have found an ideal partner for Faerch. Over the last three years, we have supported the management to build the company into a true leader renowned for its sustainable food packaging and recycling capabilities. With AP Moller Holding, the company will have a long-term oriented owner with strong roots in Denmark that is known to invest in and grow leading businesses with a positive impact on society.”
Lars Gade Hansen, CEO of Faerch A/S, says: “We are thankful to Advent for the successful partnership over the last years and for supporting us in building a unique recycling platform. Together with our new owner AP Moller Holding, we will now enter the next growth phase, benefitting from their resources, industrial network and expertise to strengthen Faerch’s European market position and build on our innovation leadership.”
“Faerch is recognised as a leader within circular food packaging solutions. It has a great team, a strong customer offering and distinctive operational capabilities. AP Moller Holding will support an acceleration of Faerch’s leadership positions and increase investments in additional recycling facilities to meet the high customer demand,” says Jan Nielsen, Chief Investment Officer at AP Moller Holding.
The sale of Faerch A/S is expected to close in the first quarter of 2021, subject to regulatory approvals.
