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Kalle sold to fourth private equity buyer

CD&R is acquiring the sausage casing maker from Silverfleet.

Clayton, Dubilier & Rice (CD&R) has bought the industrial sausage casings company Kalle from European buy out firm Silverfleet Capital.

Silverfleet, which bought a majority stake in Kalle through its first fund for €71.5 million in 2009, expects to generate 3.5x return and an internal rate of return for the company of 22.5 percent.

Silverfleet expects the deal to be completed in the next two months.

CD&R is Kalle’s fourth private equity owner. The company was bought by Silverfleet from Montagu, which purchased it from CVC Partners twelve years ago. It was rumoured last year that Silverstreet was preparing for a stock market listing for Kalle.

The German company has 16 production facilities across nine countries and exports to more than a hundred. With a stronger footing in the United States and Europe, Kalle is building its market presence in the higher-growth export and import markets of South America and Asia, according to a press release.

Silverfleet Capital is a European mid-market private equity investor with around €1.6 billion under management. Its second fund closed last year on €870 million.

In May 2014, CD&R held a final close on $6.43 billion for Fund IX, including a $434 million commitment from the firm itself.

The story was first reported on Private Equity International's sister title Agri Investor.