£390M sale of sausage casing manufacturer

By James Ridler contact

- Last updated on GMT

Sausage casing manufacturer Kalle sold to investors for £390M
Sausage casing manufacturer Kalle sold to investors for £390M

Related tags: Investment

Sausage casings manufacturer Kalle has been sold to private equity firm Clayton, Dubilier & Rice (CD&R), with a sale price understood to be for £350M to £390M.

Investment firm Silverfleet Capital, which gained a majority stake in Kalle in 2009, expected the sale to net the company “an investment multiple of 3.5 on an investment of €71.5M ​[£55.8M]”.

Electra Private Equity will also receive £22M, after agreeing to sell its stake in Kalle to CD&R. It made a joint investment of £9M with Silverfleet Capital in 2010.

The purchase is expected to be completed by the end of the first half of 2016, subject to approval by the competition authorities.

Turnover of £220M

The Germany-based sausage casing manufacturer had a turnover of £220M last year. It employed about 1,700 people and had 16 production facilities worldwide, including one in Essex, UK.

Kalle ceo Carsten Heldmann said: “Silverfleet Capital has always been very supportive of our innovation-led approach and has backed the growth of our product range with impressive success.

“While we look back with gratitude, we are now very excited about developing our future together with CD&R.”

Silverfleet manages investments in manufacturing, business and financial services, retail and healthcare. It had investment in Cimbria, a manufacturer that made equipment for the bulk handling and processing phases of the grain and seed supply chain.

Silverfleet Capital partner Guido May said:“Silverfleet supported Kalle’s international expansion and helped to drive rapid growth. Kalle is a very profitable business in an attractive market with non-cyclical growth.

“We would like to thank the Kalle management team for what has always been a close and very successful working relationship.”

Kalle – at a glance

  • Sold to CD&R for between £350M to £390M
  • Employed about 1,700 people
  • Production facilities in nine countries

Related news

Show more

Related products

show more

Where is the food sector heading?

Where is the food sector heading?

Columbus | 01-Jun-2021 | Technical / White Paper

The UK has been reeling from the impact of the COVID-19 pandemic since March 2020. How has the food and drink sector coped? How has digital transformation...

120 trays per minute - it works with Lenze

120 trays per minute - it works with Lenze

Lenze Ltd | 27-May-2021 | Case Study

By 2025, packaging materials must be completely recyclable. Developments in this area are therefore of great importance. Dampack had the concept for a...

Hidden Costs that Impact Overall Production Costs

Hidden Costs that Impact Overall Production Costs

Unifiller Systems Inc. | 10-May-2021 | Technical / White Paper

The hidden costs of production are not always obvious in business metrics. However, they are cumulative, both financially and productivity-wise, so it's...

Industry 4.0 speaks OPC UA

Industry 4.0 speaks OPC UA

Lenze Ltd | 28-Apr-2021 | Technical / White Paper

OPC UA (Open Platform Communications Unified Architecture) is an industrial machine-to-machine (M2M) transfer protocol, certified according to the IEC...

Related suppliers

Follow us

Products

View more

Webinars