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Wendel in talks to sell CSP Technologies to Aptar Group for USD555m

Wendel has received a firm offer from Aptar Group to acquire all share capital of CSP Technologies (CSP), a provider of custom polymeric solutions and specialty protective packaging, for an enterprise value of USD555 million or approximately 13 times Adjusted EBITDA.

Subsequently, Wendel has entered into an exclusivity period with Aptar Group to finalize the transaction, which should close in the fourth quarter of 2018, subject to customary information procedure and conditions including regulatory approvals.
 
In January 2015, Wendel invested USD199 million of equity in CSP, and thereafter invested an additional USD29 million to finance its acquisition of Maxwell Chase in March 2016. Based on this offer, Wendel would receive net proceeds of approximately USD345 million, or circa USD140 million above CSP’s valuation in Wendel’s net asset value as of 2 May, 2018.
 
Since 2015, Wendel has strengthened CSP’s Sales & Marketing and Research & Development functions to support the Company’s fast growth and has also deployed substantial capital into long-term growth projects. For instance, in 2017, CSP launched the construction of a new 100,000 sq. ft structure at its Auburn, AL site to increase manufacturing and warehousing capacity and set up its first-ever dedicated Material Science Lab. Wendel also supported CSP in its first acquisition, which has proven extremely successful and increased the Company’s presence in food safety. Under Wendel ownership, the Company’s reported revenues increased from USD103 million in 2014 to USD136 million in 2017.
 
André François-Poncet, Wendel Group CEO, says: “CSP’s management team has done a terrific job over the past several years expanding the Company’s capabilities and building a foundation for its long-term growth. We’d like to thank John Belfance and the entire CSP team for being true partners to Wendel. CSP is Wendel’s first North American investment following the opening of our New York office in 2013 under the leadership of David Darmon. Today’s announcement is in line with our strategic commitment to simplify Wendel’s portfolio, provided terms are attractive, and focus on larger equity investments.”
 
John Belfance, CEO of CSP Technologies, says: “We are grateful for the support Wendel has provided over the past several years. Our partnership has allowed us to significantly grow CSP and invest in our people, our capacity, and further develop our innovative material science capabilities to serve our core customers in the healthcare and food safety markets. We could not have asked for a better or more supportive partner.”
 
Barclays and Goldman Sachs acted as financial advisors to Wendel for the transaction and Fried, Frank, Harris, Shriver & Jacobson LLP as legal advisors.

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