CVC sells German sausage covering company to Montagu

CVC Capital Partners has agreed to sell Kalle Holding, a German manufacturer of artificial sausage casings, to Montagu Private Equity. The sale is expected to be completed before the end of August 2004, and while no official price was released, it is estimated to be in the region of €200m.

The CVC fund, CVC European Equity Partners, led a consortium of funds in the original buyout in 1997 from Hoechst, the German pharmaceutical’s group.

Kalle Holding is one of the world’s largest producers of viscose, plastic and textile-based artificial sausage casings. It has 1,250 employees and in 2003 generated a profit of €167m.