Private Equity News & Analysis

Citi spends $400m on plastic cutlery

CVC has purchased from Code Hennessy & Simmons a $400 million controlling stake in Waddington North America, a provider of disposable foodservice products including cutlery and takeout containers.

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Citicorp Venture Capital, the 39-year-old leveraged buyout arm of Citi Alternative Investments, has acquired a controlling stake in Waddington North America in a $400 million (€293 million) transaction. CVC purchased the stake from Code Hennessy & Simmons, a Chicago-based middle market firm.

Headquartered in Kentucky, Waddington produces single use products for the foodservice industry, including cutlery, takeout containers and drink ware.

Middle market firm Norwest Equity Partners, as well as Waddington’s management, also participated in the investment, though specific financial details were not disclosed.

Ropes & Gray provided legal counsel to CVC, while SG Americas Securities was its financial advisor.

CVC typically makes controlling investments of $100 million to $500 million in US-based middle market companies.

The 46-year-old Norwest, currently investing the $800 million NEP VIII fund, typically invests $20 million to $100 million in growing, profitable companies.