Stirling Square sells Cartonplast to DBAG

Stirling Square sells Cartonplast to DBAG

Stirling Square Capital Partners ("Stirling Square"), the pan-European private equity firm, today announces that it has signed an agreement to sell CPL Holdings GmbH ("Cartonplast" or the "Company"), the operator of sustainable pools of returnable transport packaging materials ("RTP"), to Deutsche Beteiligungs AG ("DBAG") (XETRA: DBAN), the listed private equity investor focused on mid-sized companies in German-speaking countries, and DBAG-advised DBAG Fund VII. Closing of the transaction is subject to regulatory approvals.

Stirling Square created the Company in 2013 with a simultaneous double buy-out of private equity-owned Cartonplast Group GmbH and family-owned Trading Cartonplast Iberica SA.  Since then, Stirling Square has worked closely with management to achieve seamless integration, efficient and effective partnerships with clients, as well as organic and external expansion.  Cartonplast is currently on track to deliver 4-year compounded growth rates of 6% in RTP rentals and 8% in operating profit in its otherwise stable, resilient sector.

Headquartered in Dietzenbach (Germany), Cartonplast operates a pool of c. 45 million RTP units that are rented as interlayers in the palletised transport of bottles and cans for the beverage, food and cosmetics industries. The Company provides just-in-time logistics service across a vast network straddling 130 client delivery sites in 20 countries and 7500 filler collection sites in 30 countries.  It uses only hygienically serviced, reusable plastic materials, promotes the substitution of cardboard with recyclable RTP, and contributes to better industry-wide sustainability.

Under Stirling Square's stewardship, the management team was expanded and empowered, substantial pool investments were made to support growth in existing and new markets, and strategic acquisitions were consummated in Brazil, France and Germany.  Cartonplast is currently rolling out new services in plastic pallets in Europe and in plastic layer pads in Brazil.

Gregorio Napoleone, co-founder of Stirling Square, said: "We are very pleased with Cartonplast's achievements under the leadership of Serkan Koray, and are proud of having assisted his management team through pervasive transformation.  Cartonplast's business model is unique and has tremendous growth potential across geographic boundaries, end-user industries and RTP segments.  The Company is well structured to seize future opportunities."

Serkan Koray, CEO of Cartonplast, said: "Stirling Square has been critical in helping us grow as a business and as a team, at a time when we aimed to consolidate customers' loyalty and international mega trends continued to validate our business model.  We are ready for our next phase of expansion and look forward to working with DBAG on capitalising upon our momentum."

Stirling Square Capital Partners backs MBO of Cartonplast Group

Stirling Square Capital Partners backs MBO of Cartonplast Group

Cartonplast is the European market leader for the processing and servicing of plastic layer pads used in the food and beverage industry for transporting glass containers

German / Spanish transaction marks the pan-European private equity investor’s seventh acquisition from its second fund

7 January 2013 – Stirling Square Capital Partners (“Stirling Square”), the leading pan-European lower mid-market private equity firm, today announces the signing of acquisition documentation in respect of Cartonplast Group GmbH (“Cartonplast”), the European market leader in processing and servicing of reusable plastic layer pads (“PLP”) used in the food and beverage industry for transporting glass containers. The acquisition is subject to, amongst other matters, anti-trust approval and is for an undisclosed sum. As part of the transaction, Stirling Square and Cartonplast management will acquire 100% of Cartonplast from Synergo SGR SpA and the 50% stake in Cartonplast’s Madrid-based Iberian subsidiary that Cartonplast did not already own, from the Ferragut family.

PLPs are used for the safe and hygienic transportation of glass containers between the place of manufacture and filling. Cartonplast’s service is based on a unique closed-loop logistics system which encompasses the procurement, rental, cleaning and recycling of over 120 million PLP deliveries each year. As PLPs are re-usable and the entire closed-loop cycle is managed by Cartonplast, the service provides an environmentally sustainable basis for the packaging and transportation of glass containers.

Headquartered in Dietzenbach, Germany, Cartonplast employs over 400 people in nine countries, with 14 service centres across Europe. From this base, the company delivers PLPs to 133 glass manufacturers in 19 countries that ultimately deliver PLP-stacked containers to about 4,000 fillers; it is from these fillers that PLPs are then collected by Cartonplast for re-conditioning before further service.

Under the leadership of a broad senior executive team headed by CEO Joachim Kreuzburg and supported by Stirling Square, organic and external growth opportunities will be pursued in the European, Asian and Latin American markets.

Gregorio Napoleone, Partner at Stirling Square, said: “Cartonplast's unique business model and pan-European footprint, combined with its leadership position in the markets served, are attractive fundamentals and provide an excellent platform from which to grow the business. An experienced and ambitious management team is in place and initiatives are under way to expand Cartonplast beyond its historic boundaries. This transaction has a natural fit with Stirling Square’s strategy and we are enthusiastic at the prospect of placing our experience and capabilities in support of this team of entrepreneurial managers."

Joachim Kreuzburg, Cartonplast CEO since 2010, added: "In addition to fresh capital for our expansion, Stirling Square offers a truly international perspective for the future development of our business, both across Europe and in important new, growth markets such as Asia and Latin America. We will grow with our customers by providing a quality service across national boundaries and through diversification across new products and markets. With the support of Stirling Square I am confident on the future development of our business.”

Advisers to Stirling Square:
Fineurop Soditic – M&A Advisory
Rothschild – Debt Advisory
Latham & Watkins – Legal (M&A)
Clifford Chance – Legal (Banking)
KPMG – Financial and Tax Due Diligence, Structuring
LEK – Commercial Due Diligence
Roland Berger – Commercial Due Diligence
ERM – Environmental Due Diligence
Willis – Insurance Due Diligence

Advisers to Vendor:
UniCredit – M&A
Deloitte – Financial
DLA Piper – Legal
LEK - Commercial