Cinven and its junior partner, JP Morgan Partners, have agreed to sell Klöckner Pentaplast to Blackstone for €1.3 billion.
Klöckner was acquired for €925 million in 2001. According to Cinven partner Peter Gangsted, Cinven’s strategy for the plastics company was to expand its product base and operations, in particular in South America and Asia. This, coupled with reorienting the company towards the customer, kept it profitable even with the trebling in oil prices since 2002, Gangsted said.
Blackstone was prepared to pay eight times EBITDA for the company, on Klöckner’s 2006 revenues of €1.2 billion. Gangsted said for Blackstone, ‘the next leg is to invest further in the expanded geographic footprint of Klöckner’.
Cinven’s management team has experience in the plastics and packaging industry. It has had a stake in the plastic pipe manufacturer, Frans Bonhomme, since 2000 and fully acquired this business in 2005. Packaging firm Smurfit Kappa is also in the Cinven portfolio.
Klöckner plastics have applications in packaging, furniture surfaces and in the production of credit cards.
The sellers were advised by Morgan Stanley in this transaction.
The Blackstone Group declined to comment