Cinven sells Klockner for €1.3bn

The sale price is an 8x multiple on the company’s pro-forma EBITDA, based on revenues of €1.2bn in 2006 – up from the €833m recorded when Cinven, alongside minority partner JPMorgan Partners, acquired kp in 2001.

Bought for a total of €925m from German parent Klöckner Werke, kp supplies both the US and Europe, making films for the packaging of pharmaceutical and medical devices, foods and other products, as well as specialty applications, including plastic card products and furniture surfacing. The business operates from 14 facilities in eight countries, primarily Germany, the US, the Netherlands and Switzerland.

The company made three acquisitions – Neoplastica, Witt and VPI Mirrex – which has seen the company expand into new territories and expand the product base.

Peter Gangsted, a partner at Cinven, said: “Our growth strategy for kp has delivered real value. We have expanded kp´s business 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.”