3i Group plc has agreed to invest approximately €250 million ($279.5 million; £183million) in Weener Plastic Packaging Group (WPPG), providing an exit for Lindsay Goldberg Vogel, the European affiliate of New York private equity firm Lindsay Goldberg LLC, according to a statement by the London-based 3i.
WPPG is a Weener, Germany-based manufacturer of rigid plastics packaging materials, including caps, closures, jars, bottles and related products for consumer product, food and beverage companies. It has 24 facilities in 15 countries, serving customers such as Beiersdorf, Colgate-Palmolive, L'Oréal, Nestlé, P&G and Unilever.
“The company has a leading position in its core markets and we look forward to working with the strong management team to further increase the company's market share and global footprint through a buy-and-build strategy,” said 3i managing director and head of industrial Ulf von Haacke in a statement.
Lindsay Goldberg acquired Weener in April 2012.
WPPG generated €270 million in sales in 2014 and demonstrated an annual compounded revenue growth rate of 8 percent from 2010 to 2014.
3i's growth strategy will involve a buy-and-build approach to increase its penetration into adjacent product categories, as well as emerging markets, according to its statement. As part of the deal, former Rexam chief executive Leslie Van de Walle will join the company's advisory board as chairman.