Blackstone seals €1.2bn manufacturing exit

The sale of packaging manufacturer Mivisa will generate a 35% IRR for Blackstone and co-owners N+1 Mercapital and Dinamia.

The Blackstone Group will sell Spanish packaging manufacturer Mivisa to US trade buyer Crown Holdings in a cash transaction valued at €1.2 billion. 

It is understood that Blackstone owned 90 percent of the business, while Madrid-headquartered private equity firm N+1 Mercapital and listed Spanish firm Dinamia Capital together held the remaining 10 percent. All three groups will have generated a gross internal rate of return of 35 percent. The gross proceeds for Dinamia will be approximately €14 million, according to a statement. The sale is subject to approval by competition authorities and is likely to close in 2014.

Mivisa is a manufacturer of food packaging in Spain. It employs more than 2000 people and has a presence in over 70 countries, including 10 factories across Spain, Netherlands, Hungary, Morocco and Peru. For the fiscal year ending on 30 June 2013, Mivisa generated sales revenues of €555 million and had an EBITDA of €133 million.

Blackstone and N+1 completed a dividend recapitalisation of Mivisa earlier this year. The pair reportedly arranged a €150 million loan which would have been used to pay the firms a dividend on top of €35 million of cash from the company's balance sheet. 

Blackstone declined to comment, while N+1 Mercapital did not respond to a request for comment at press time. 

It is understood Blackstone used capital from its $22.4 billion Blackstone Capital Partners V. N+1 invested in Mivisa using its N+1 Private Equity Fund II.

The sale of Mivisa marks the first time in more than a decade that the company will not be private equity-backed. N+1 Mercapital invested in Mivisa in 2011 when CVC Capital Partners exited the company. CVC first invested in the business in 2005, acquiring it from Suala Capital and PAI Partners, which backed Mivisa in 2002.

N+1 merged with Spanish rival firm Mercapital in 2011 to create the combined entity. The firm manages funds worth a combined €1.7 billion.