Candover has realised its investment in Irish packaging and printing specialist Clondalkin in a secondary buyout. Warburg Pincus has acquired the business for €630m. Completion is subject to regulatory clearances. Senior management will hold a substantial stake in the business with group chief executive officer, Norbert McDermott and all the senior management remaining in their roles.
Candover and its management team took Clondalkin private from the Irish stock exchange in November 1999 in a deal worth €550m. The business supplies innovative packaging solutions to a diversified customer base in the food and beverage, consumer products and pharmaceuticals sectors. It operates from over 40 separate manufacturing locations throughout Europe and the US.
Candover director Ian Gray said: “Clondalkin has been an excellent investment for our 1997 fund, generating a return in excess of two times. Clondalkin has a proven strategy to generate sustained cash flow and earnings growth, and we wish the company continued success under its new ownership.”
Candover has celebrated a run of exits over the past year including Camden Motors, Detica and Baxi; all from its 1994 fund. Airtechnology and Pandrol (parts of the Charter investment), Bourne Leisure, Picard and Inveresk; from the 1997 Fund. And Aspen Insurance, a 2001 Fund investment that listed on the New York Stock Exchange.