Paragon acquires film manufacturer DUO PLAST
Frankfurt am Main / Stuttgart / Lauterbach — The Frankfurt-based investment company VR Equitypartner, together with co-investor Süd Beteiligungen GmbH (SüdBG), is selling its majority stake in DUO PLAST Holding GmbH, which it acquired around six years ago. The remaining shares held by the management also change hands. The new owner of the successful high-performance film manufacturer is the Munich-based private equity firm Paragon Partners. The transaction, which is pending regulatory approval, is expected to close later in summer 2019; no financial details are disclosed.
DUO PLAST Group, founded in 1983, is a leading manufacturer in the packaging and stretch film market. The company is headquartered in Lauterbach, Hesse, with additional production and sales branches in Thuringia, Austria, France and Turkey. Its particular strengths lie in the acknowledged high quality of its products and in the company’s high level of innovation and customer orientation. The product portfolio consists of five business areas: stretch, stretch and wrap films for load securing, films for silage applications, barrier films for food packaging, and semi- and fully-automatic packaging lines for industry. In addition, the company’s range of services is rounded off by the globally unique technology center for cargo and transport security and extensive service activities.
Dr. Edin Hadzic, photo, co-founder and managing director of PARAGON PARTNERS: “We are excited about DUO PLAST’s long-standing technology leadership, innovative strength and stable customer base. We look forward to working together to further develop DUO PLAST and support its next phase of growth with fresh equity.”
VR Equitypartner and SüdBG acquired a majority stake in DUO PLAST in 2013 as part of a succession plan; the company’s founder and until then CEO and main shareholder Norbert Jäger moved to the Supervisory Board at that time. During the partnership, DUO PLAST has continued to grow — the company now employs about 150 people and turns over nearly 60 million euros a year. Extensive investments in development and production took place and the company was able to push ahead with its internationalization.
“We are pleased that we were able to fulfill the trust placed in us by the founding generation. In addition to important investments, milestones in the further development of DUO PLAST were above all the reorganization of the management and the professionalization of numerous processes. Today, DUO PLAST is considered an innovation leader and has a correspondingly outstanding market position,” explains Christian Futterlieb, Managing Director of VR Equitypartner. Director Johannes Fleck adds to the successfully implemented catalog of measures: “During its time as a portfolio company of VR Equitypartner and SüdBG, DUO PLAST has repositioned itself as a high-end supplier of extrusion films with a strong sales focus — among other things by systematizing and pushing direct sales and key account management as well as establishing a unique sales approach.”
Erich Steiner, CEO of DUO PLAST, confirms the good cooperation: “I would like to thank the previous shareholders for what we have achieved together. We have achieved what was intended: the transfer of the company into trustworthy hands, the continuation of the successful growth and niche strategy and the sustainable positioning for the future of the company. We are now excited about the next development steps in which the new, entrepreneurial investor intends to support us.”
About VR Equitypartner GmbH
VR Equitypartner is one of the leading equity financiers in Germany, Austria and Switzerland. The company supports medium-sized family businesses in a goal-oriented manner and with decades of experience in the strategic solution of complex financing issues. Investment opportunities include growth and expansion financing, corporate succession or shareholder changes. VR Equitypartner offers majority and minority investments as well as mezzanine financing. VR Equitypartner’s portfolio currently comprises around 100 commitments with an investment volume of EUR 500 million.
Consulting firms involved in the transaction by VR Equitypartner:
M&A: William Blair International, Frankfurt
Financial, Tax, Commercial: PricewaterhouseCoopers, Munich, Stuttgart
Legal: McDermott Will & Emery, Frankfurt
Environmental: ERM, Munich, Neu-Isenburg