Dubai International Capital (DIC), the private equity arm of Dubai Holding, on Monday confirmed the sale of Mauser Group to private equity firm Clayton, Dubilier & Rice for $1.7 billion.
Mauser, which was acquired by DIC in 2007 in a deal that valued the Group at $1.1 billion, is a worldwide leading producer of rigid industrial packaging with approximately 4,400 employees and consolidated revenues of over $1.6 billion.
David Smoot, CEO of DIC, said: “Mauser has been a very successful investment for DIC, providing a return of approximately double our equity invested.
“We partnered with a strong management to improve the Group from both a strategic and financial perspective, and now is the right time for it to continue its development under new ownership.
“Mauser is well positioned to drive further growth and profitability given its attractive global platform.”
Mauser Group CEO, Hans-Peter Schaefer, added: “On behalf of our entire management I would like to thank DIC for supporting Mauser through what was an incredibly successful period of growth for the business.
“In the seven years under DIC’s ownership, we worked closely together to increase Mauser’s footprint and customer offering, as well as significantly improve its operational efficiency. I am looking forward to working with CD&R to continue building on Mauser’s success.”
DIC said under its ownership, Mauser significantly increased its footprint across key products and geographies and now operates out of 83 facilities across 18 countries, up from 53 facilities in 12 countries in 2007.
Sonja Terraneo, artner of CD&R said: “Mauser has a strong track record of innovation, which has helped the company firmly establish itself as a market leader. There are exciting opportunities for further growth and we are looking forward to working with the management team to unlock value and continue to deliver success.”
The sale and purchase agreement is conditional upon receipt of all appropriate anti-trust approvals, DIC said in a statement.
CD&R edged out interest from a number of other parties, including a joint bid from buyout firm Ardian in combination with industry rival Technoplast and one from Pamplona.
The New York-headquartered fund is lining up a syndicated loan of around 1 billion euros to back the purchase, or 6.25 times Mauser’s roughly 154 million euros in EBITDA (earnings before interest, taxes, depreciation and amortisation).
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