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