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HGGC & Charlesbank book 10.6x return on Citadel Plastics

Citadel Plastics will be acquired by A. Schulman

HGGC and Charlesbank Capital Partners have exited Citadel Plastics Holdings for $800 million. The company will be acquired by plastics supplier A. Schulman.

The transaction represents a nearly 10.6x return and is expected to close in the second quarter of 2015.

Citadel Plastics is a provider of thermoplastic and engineered composite compounds in North America.

Citadel was first acquired by the pair of GPs in 2012 for an undisclosed sum. Since then, Citadel has acquired Lucent Polymers and The Composites Group to expand its business and product offerings.

The sale of Citadel, in which HGGC has a controlling interest, marks the firm’s seventh exit of 11 middle market platform investments made out of its $1.1 billion debut fund and is the firm’s first transaction of 2015, after completing 10 transactions last year.

As PEI reported earlier this month, HGGC just closed its second fund on $1.33 billion. That fund will continue the firm's middle market investment strategy.