Silverfleet slices up sausage deal

Electra Partners becomes the fourth financial sponsor to own a portion of German sausage casing manufacturer Kalle.

European mid-market firm Silverfleet Capital has syndicated out part of the equity from its €212.5 million buyout of German sausage casing manufacturer Kalle.

Silverfleet bought the business from fellow mid-market player Montagu Private Equity in September last year, netting Montagu two times its invested capital in the process. Montagu had acquired the business in 2004 from European buyout firm CVC Capital Partners.

A syndicate of lenders led by the Bank of Ireland backed Silverfleet’s September acquisition with a €133 million debt package.

As part of the syndication, Electra Partners, a London-based private equity partner led by managing partner Hugh Mumford, invested €10.5 million in Kalle. Another unnamed group invested a “similar” sized amount, according to a source close to the process.

The equity syndication broadens the investor base and “provides increased firepower for Kalle’s buy and build strategy”, said a statement from Electra.

Headquartered in Wiesbaden, Germany, Kalle is one of the five largest global producers of artificial casings for sausages. The business has forecasted sales of €220 million, a statement from Silverfleet said.