Alantra advises HQ Equita on refinancing of The Packaging Group
Bad Homburg/Engelskirchen/Frankfurt — Alantra, a global investment banking and asset management firm focused on the mid-market segment, advised HQ Equita, the direct investment arm of HQ Capital, on the refinancing of its portfolio company The Packaging Group (“TPG”). TPG is a global leader in the design and manufacture of premium packaging machinery for the food, pet food and chemical industries. — Alantra structured and arranged new credit facilities in a competitive process to repay shareholder loans from HQ Equita and to refinance existing debt. In addition, the company received new acquisition and CapEx lines for organic and external growth.
TPG develops and manufactures packaging machines for filling dry, free-flowing bulk materials into various types of bags made of paper or plastic laminate. The machines provide packaging solutions for flour, sugar, baking mixes, confectionery, pet food, and various chemical products, among others. The service and spare parts business also accounts for around a quarter of TPG’s sales. The company, with 210 employees at four international production and sales locations, was created in 2018 by merging FAWEMA and HDG (formerly: Steindl Group) under HQ Equita.
The financing volume provided by a consortium consisting of Commerzbank and Oldenburgische Landesbank (OLB) supports TPG in expanding its technical competencies and geographical reach through targeted acquisitions in order to further expand its market position as a globally active platform in the packaging machinery market. The strengthened debt capital base also enables TPG to expand a production site and build a third state-of-the-art “greenfield” production facility. In addition, it is intended to accelerate investments in sales, as well as research and development, and to further institutionalize the organization.
Florian Wiemken, who is managing HQ Equita’s involvement with TPG, said: “This financing package is very well structured and allows TPG to grow sustainably. Germany is a leader in the highly fragmented packaging machinery market and the acquisition line will allow TPG to accelerate its organic and external growth in this environment. Alantra led a very competitive process with the financing banks and did an excellent job on this transaction.”
Robert von Finckenstein, Managing Partner and Head of Debt Advisory in Alantra’s Frankfurt office, added: “The refinancing of TPG is already the fifth transaction for HQ Equita in the past four years and our twelfth debt advisory mandate in the past twelve months. It also continues the string of successful transactions Alantra has completed for its clients in the packaging industry, including HQ Equita’s sale of Rovema to Haniel in 2017 and IMA’s acquisition of Odewald’s Oystar dairy business in 2015.”
Alantra is a global investment banking and asset management firm focused on the mid-market segment with offices in Europe, the US, Asia and Latin America. With over 330 experts, the Investment Banking unit provides independent advice on M&A, corporate finance, loan portfolios and capital market transactions. The Asset Management unit manages assets of around 4.5 billion euros in the asset classes private equity, active funds, private debt, real estate and wealth management. For more information, please visit: www.alantra.com.
About HQ Capital
HQ Capital is one of the leading independent investment managers for alternative capital investments. Since 1989, HQ Capital has invested globally in private equity and U.S. real estate for institutions and families. Over 145 employees manage and invest approximately $12 billion (as of September 30, 2018) from 10 locations in North America, Europe and Asia.
HQ Equita is the investment business of HQ Capital. For more than three decades, the focus of HQ Equita has been on investments and shareholdings in medium-sized companies in German-speaking countries. From Bad Homburg, around 15 specialists support medium-sized companies in their growth and transformation. Since 1992, HQ Equita has raised around one billion euros in capital and invested in over 30 companies.