Deutsche Beteiligungs AG invests in Cartonplast Group
Frankfurt am Main -Deutsche Beteiligungs AG (DBAG) is investing in Cartonplast Group GmbH (Cartonplast), Europe’s leading operator of a pool system for reusable plastic layer pads used in particular for transporting glass containers in the beverage and food industries. As part of a management buy-out (MBO), DBAG Fund VII, which is advised by DBAG, will acquire the majority of shares in Cartonplast from the financial investor Stirling Square Capital Partners, based in London.
DBAG will investaround 26 million euros alongside the fund; in future, it will hold around 17 percent of the shares in Cartonplast. In addition, the company’s management will also remain involved. The closing of the purchase agreement is subject to the approval of the antitrust authorities and is not expected before October 2019. The parties have agreed not to disclose the purchase price.
DBAG Fund VII has been investing in medium-sized companies, primarily in German-speaking countries, since December 2016. Cartonplast is DBAG Fund VII’s eighth investment in total and the third for which its top-up fund is also used. With the Cartonplast transaction, approximately 71 percent of the investment commitments of the main fund and approximately 59 percent of the capital commitments of the top-up fund of DBAG Fund VII will be invested.
Cartonplast (www.cartonplast.com) was founded in 1985. The company primarily rents reusable and recyclable plastic liners for transporting glass bottles, cans and other glass or PET containers for food to the manufacturers of these containers. Cartonplast has established a closed logistics loop within the value chain of its customers, which includes not only rental but also collection, sorting and cleaning of the layer pads. Compared to cardboard layer pads, plastic layer pads are more hygienic, safer for transport and — due to their reusability — more cost-efficient.
In addition to its headquarters in Dietzenbach, Cartonplast has 16 other sites — abroad, especially in Western and Central Europe, Turkey, Russia, Brazil and South Africa. In 2018, the company generated sales of around 80 million euros; around three quarters of this was attributable to the plastic layer pad rental business.
With its close customer relationships, Cartonplast has established a leading position throughout Europe in a market with solid growth rates. The company is benefiting from an increasing outsourcing trend as well as from sustainability efforts and the growing importance of the circular economy. In the coming years, Cartonplast is to continue to grow dynamically through internationalization. In addition, the offer is to be expanded, for example, through the additional rental of pallets and plastic cover caps.
“Stable market conditions and a strong market position make Cartonplast an attractive investment opportunity for DBAG,” commented Torsten Grede, Spokesman of DBAG’s Management Board, on the occasion of the signing of the contract. “We were also convinced by the entrepreneurial vision of the management. We see very good conditions for further profitable growth.”
“In the coming years, we will continue our international expansion,” said Serkan Koray, CEO of Cartonplast. “With DBAG, we have a strong and experienced partner at our side who will accompany us in this important development step.”
Deutsche Beteiligungs AG, a listed company, initiates closed-end private equity funds and invests alongside DBAG funds in well-positioned medium-sized companies with development potential. DBAG focuses on industrial sectors in which German SMEs are particularly strong by international standards. With this experience, know-how and equity, it strengthens the portfolio companies in implementing a long-term, value-enhancing corporate strategy. The entrepreneurial investment approach makes DBAG a sought-after investment partner in the German-speaking region. The capital managed and advised by the DBAG Group amounts to approximately 1.7 billion euros.