3i leads Paper-Pak MBO

The private equity firm has teamed up with management at PaperPak to complete a buyout of the firm valued at just under E100m.

3i has completed the management-backed acquisition of Paper-Pak Products, a US manufacturer of adult incontinence products, in a transaction that values the business at E95m.

Founded over 40 years ago, the business, which has its European headquarters in Sweden and employs over 900 people globally. 

“We have been working with 3i for almost a year to purchase the worldwide operations of the company,” commented Michael Brown, Paper-Pak chief executive, who led the company’s management team. Last year, the firm divested its grocery packaging and materials division to focus on its core activities, which according to Brown make the investment particularly attractive.

Using proprietary money as well as capital from managed European funds, 3i are providing approximately $36m of equity for the transaction. Wells Fargo and Barclays Bank are providing debt financing. 3i will also provide the business with working capital. The company plans to introduce new products and programs with a focus on the premium Attends brand, which PaperPak acquired from Procter & Gamble in 1999.

3i's buyout division is currently investing a fund raised in 1999 whilst marketing a new vehicle with the aim of raising E1.5bn from third parties and matching it with balance sheet money.