CD&R makes 3x on industrial packaging exit

The sale comes as the buyout house gears up for a final close on its 10th flagship fund.

Clayton, Dubilier & Rice (CD&R) has made a 3x return on its exit of Mauser Group, a spokesperson for the fund confirmed to Private Equity International.

The global supplier of industrial rigid packaging products and reconditioning services was sold to Los Angeles-based Stone Canyon Industries through its BWAY subsidiary, a manufacturer of rigid metal, plastic and hybrid containers, in an all-cash transaction valuing the business at $2.3 billion, according to a statement.

The sale was announced in February and closed on 4 April.

Mauser was acquired by CD&R in 2014 using capital from its $6.43 billion Fund IX, which closed in 2013. That fund is as much as 80 percent deployed in 15 investments, CD&R confirmed.

Under CD&R’s ownership, Mauser’s revenue has grown 9 percent per year, while EBITDA has grown by 15 percent, the firm said. At the point of sale, the company had more than 5,000 employees across 18 countries. It made 11 add-on acquisitions during CD&R’s hold period.

CD&R will be keen to return capital to its investors as it continues to fundraise for its 10th flagship buyout fund, which is in market targeting $8.5 billion.

Fund X has an 8 percent hurdle rate, 100 percent fee offset and a management fee of 1.5 percent, as reported by PEI. The general partner commitment is expected to be around 5 percent of the total fund.

Bank of America Merrill Lynch acted as lead financial adviser for the Mauser sale, Citigroup as financial adviser and Latham & Watkins as legal counsel to CD&R. Goldman Sachs acted as financial adviser and Gibson, Dunn & Crutcher provided legal counsel to Stone Canyon Industries.