Dubai International Capital (DIC), the direct private equity investment arm of state-backed investment group Dubai Holding, has agreed to sell MAUSER Group, an industrial packaging producer, to Clayton, Dubilier & Rice for $1.7 billion.
The divestment will yield DIC a 2x return on the invested equity, according to a statement.
The business was sold in an auction process run by Bank of America Merrill Lynch. In the final round, Clayton, Dubilier and Rice fought off competition from fellow GPs Ardian, Pamplona Capital Management and Platinum Equity, according to a source familiar with the matter.
DIC declined to comment beyond the statement, while CD&R was unavailable to comment at press time.
German-based MAUSER, was founded in 1896 and is a provider of innovative packaging technologies. It has customers in the chemical, agrochemical, petrochemical, and pharmaceutical sectors as well as in the food and beverage industries.
DIC bought the company for $1.1 billion in 2007. Under DIC’s ownership, MAUSER has increased its geographical footprint operating out of 83 facilities across 18 countries, up from 53 facilities in 12 countries in 2007. Profit margins have also steadily increased while adjusted EBITDA margins expanded from 10.7 percent to 12.3 percent between 2007 and 2013.
CD&R’s investment comes as the firm is close to wrapping up fundraising for its Fund IX. The fund, which attracted about $8 billion of interest from LPs, is likely to close on its $6 billion hard-cap, PEI reported in February. An additional $250 million GP commitment will take the fund’s total to $6.25 billion. Fund IX came to market in March 2013 and held an initial close on $3 billion in August.
Prior to MAUSER, CD&R made three investments from Fund IX, including specialty chemicals supplier Ashland Water Technologies, which the firm acquired for $1.8 billion in February. Other Fund IX investments include sterile drug compounding service provider PharMEDium Healthcare Corporation. CD&R also created a new company from acquiring Harsco Corporation’s infrastructure business and Brand Energy & Infrastructure Services in November 2013.