The purchase is expected to be completed around the end of the first half of 2016, subject to approval by the competition authorities.
Silverfleet Capital hopes to achieve an investment multiple of 3.5 on an investment of €71.5m (£55.7m). The Internal Rate of Return (IRR) is 22.5%.
Silverfleet Capital acquired a majority stake in the Kalle Group in 2009 and was instrumental in driving forward international expansion and its value-added casings operation. Value-added casings are a major growth driver and the fastest growing segment in the Kalle Group.
Kalle: By the numbers
- 1,700 employees
- 16 production facilities in nine countries
- Present in more than 100 countries
- €281 million turnover in 2015
The acquisition of US-based net casings manufacturer Jif-Pak in 2010 gave Kalle’s growth a further boost, with turnover of the new subsidiary having almost doubled to more than $47m (£32.1m) since then, as well as growing the brand’s US presence.
Guido May, a partner at Silverfleet Capital, said: “Silverfleet supported Kalle’s international expansion and thus helped to drive rapid growth. Kalle is a very profitable business in an attractive market with non-cyclical growth. Thanks to its innovative capability, which is unique within the industry, Kalle is constantly bringing new top-selling products to market. We would like to thank the Kalle management team for what has always been a close and very successful working relationship and a good example of Silverfleet Capital’s proven ‘buy to build’ approach. Kalle is now excellently positioned as a leading global supplier of industrially-produced casings for meat products. The prospects for continued growth over the coming years are thus very good.”
‘Excited’ on future
Kalle CEO Dr Carsten Heldmann added: “Over the past seven years, we have enjoyed very profitable growth and continued to develop our technological edge and regional footprint. 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, supporting us in making full use of our opportunities and raising Kalle to the next level.”
In addition to value-added casings, the company makes a wide range of fibrous, polymer and textile casings. In addition to its core casings business, Kalle produces functional ingredients and supplies one-third of global demand for high-quality sponge cloths.