Dubai International Capital (DIC) has signed a $1.7bn (£1bn) agreement for the sale of Germany-based packaging group Mauser to private equity firm Clayton Dubilier & Rice (CD&R)
Mauser, global producer of rigid industrial packaging including cans and drums for transporting medical waste and other hazardous chemicals, employs 4,400 employees and has consolidated revenues of over $1.6 bn (£940m).
It was acquired in a $1.1bn deal by DIC from JP Morgan’s buyout unit in 2007.
There were reports that the Mauser sale would result in a bidding war between two other DIC assets – British engineering group Doncasters and German alumina manufacturer Almatis – but DIC, the private equity arm of Dubai Holding which is owned by Dubai’s ruler Sheikh Mohammed Bin Rashid Al Maktoum, opted for a sole process with CD&R.
David Smoot, chief executive of DIC, said Mauser had been a successful investment for DIC, providing a return of approximately double DIC’s equity invested.
“We partnered with a strong management to improve the group from both a strategic and financial perspective, and now is the right time for it to continue its development under new ownership. Mauser is well positioned to drive further growth and profitability given its attractive global platform.”
The sale to the New York-based private equity is one of the largest asset disposals by a state-owned investment fund in Dubai since its debt crisis in 2009.
Sonja Terraneo, Partner of CD&R, said the packaging group had a strong track record of innovation.
“There are exciting opportunities for further growth and we are looking forward to working with the management team to unlock value and continue to deliver success.”
Mauser group chief executive Hans-Peter Schaefer added that in the seven years working under DIC’s ownership, the company increased its footprint and customer offering, as well as improving its operational efficiency.
“I am looking forward to working with CD&R to continue building on MAUSER’s success.”
Nicholas Mockett, M&A expert from Moorgate Capital, told Packaging News: “Mauser is one of the worlds largest and best known industrial packaging companies which has proprietary technology, a complement of products and a significant global foot print. It has a rare attribute for the packaging industry in that is a recognised brand. “
Founded in 1896 and headquartered in Bruehl near Cologne (Germany), Mauser now operates out of 83 facilities across 18 countries, up from 53 facilities in 12 countries in 2007.
Profit margins between 2007-2013 increased, with adjusted EBITDA margins expanded from 10.7% to 12.3%.
