“With headquarters in Amsterdam and turnover of around €350m, Clondalkin Flexibles is one of the leading players in the European Flexible Packaging market operating in the Netherlands, Germany, Switzerland, UK, and US,” said Nick Mockett, head of packaging M&A, Moorgate Capital.
Shrink sleeves, barrier films, skin films
“Clondalkin Flexibles has an impressive range of differentiated flexible packaging products including stand-up pouches, shrink sleeves, barrier films, skin films, and bio-degradable films.”
DairyReporter reported in September the Dutch-based private equity firm Egeria had signed an agreement to acquire 100% of the shares of Clondalkin Flexible Packaging Group from an affiliate of Warburg Pincus.
Paddy Mullaney, CEO, Clondalkin said at the time: “We are delighted to team up with Egeria for the next step of our development plan. Egeria’s experience in supporting businesses will further facilitate and strengthen Clondalkin’s continued development and expansion.
New product development
Mockett added, Clondalkin has a culture of innovation and new product development and consequently its portfolio of flexible packaging products includes complex multi-layer and barrier films as well as foils, laminates and coatings.
“This is the third significant European flexible packaging company in three years to be passed from one private equity house to another,” he said.
“In early 2015, One Equity sold Constantia to Wendel, in July 2016 Capiton sold Schur to Lindsay Goldberg and now Warburg Pincus is selling Clondalkin to Egeria.
“This is an interesting trend, highlighting the attractions to investors of robust packaging industry and the high growth flexibles sector in particular.”
The transaction follows the sale of another Moorgate Capital client, British Polythene Industries (BPI), to RPC Group in August.
BPI is a producer of polyethylene films, supplying the flexible packaging market and agricultural films industry amongst others. With turnover of approximately £500m, BPI has operations in UK, Belgium, the Netherlands, and North America.
“With these milestone deals taking place in 2016 we are confident of more M&A activity in films and flexible packaging in 2017 and beyond,” said Mockett.