European private equity firm Cinven and its minority partner JPMorgan Partners have agreed to sell Klöckner Pentaplast, the world’s leading manufacturer of rigid plastic films, to an
European private equity firm Cinven and its minority partner JPMorgan Partners have agreed to sell Klöckner Pentaplast, the world’s leading manufacturer of rigid plastic films, to an affiliate of the Blackstone Group for EUR1.3bn, equivalent to eight times pro-forma ebitda.
Founded in 1965 at Montabaur in Germany, Klöckner Pentaplast operates 21 manufacturing sites in 11 countries, using a range of polymers and production processes. Cinven and JPMorgan Partners, whose investment is managed by CCMP Capital Advisors, acquired KP in 2001.
Over the past six years the company’s private equity owners have worked with the management team to improve the business through expansion into new territories and broadening the product base. The firm’s revenues increased from EUR833 million in FY2001 to EUR1.2bn last year, and the number of employees has grown from 3,100 in 2001 to more than 3,400.
‘Our growth strategy for KP has delivered real value,’ says Cinven partner Peter Gangsted. ‘We have expanded into new markets through organic growth and by seven strategic acquisitions, particularly in Asia and South America. With our knowledge of the packaging industry we were well positioned to advance the regional expansion as well as the extension of KP’s product range.
‘The company has now established a much stronger competitive position as the world’s leading producer of rigid plastic films, which is opening up further growth opportunities. KP has been a successful investment for us in spite of difficult conditions caused by the oil price increase since 2002 and we wish the company, its management and staff continued growth in the future.’
Says KP chief executive Thomas J. Goeke: ‘Klöckner Pentaplast has achieved much over the past six years in partnership with Cinven, whose experience of the packaging sector has brought real value. We look forward to working with our new owners in taking the business forward.’
Adds Blackstone managing director Lionel Assant: ‘We see in Klöckner Pentaplast a high quality business with a leading position in the plastic rigid film market. We look forward to supporting the strong management team during the next step of the company’s evolution.’
