US-based private-equity firm Oak Hill Capital Partners will acquire Berlin Packaging, a supplier of plastic, glass and metal containers for an amount close to $1.43bn, including debt.
Oak Hill will pay a price for Berlin Packaging that is about 14 times more than the company's earnings of about $100m before interest, taxes, depreciation and amortization, reported the Wall Street Journal.
According to the report, Oak Hill will invest roughly $650m in Berlin Packaging, while the rest of the deal will be financed with debt.
This will help Berlin Packaging to repay its exiting obligations and leave it with a debt of close to $765m when the deal closes in September 2014.
Established in 1898, Berlin Packaging claims to manufacture close to 3.5 billion components every year with more than 90 domestic sales and warehouse locations. The company quotes annual revenue of around $800m.
According to S&P Capital IQ, Investcorp Bank acquired a majority stake in the company for about $410m in 2007.
The Wall Street Journal further reported that Oak Hill's acquisition was another deal among many secondary buyouts this year, in which one private-equity investor purchases a company from another.
According to data provider Dealogic, there have been similar deals worth more than $50bn across the world so far in 2014.Packaging
