Pamplona backs Loparex SBO

An auction run by William Blair saw Pamplona acquire ICG's stake, while the company's management team retains a stake in the business.

Unquote sister publication Mergermarket reported in early June that the business had EBITDA of between $80-90m and could fetch up to 9x EBITDA in a sale.

San Francisco-based sponsor Genstar Capital was among the finalists in the auction, the publication added.

Pamplona and ICG have declined to comment on the transaction, while Loparex had not replied to requests to comment at the time of publication.

Debt
Loparex was offering investors early looks at a $500m loan package to finance its buyout by Pamplona, and Jefferies is the lead arranger, Unquote sister publication Debtwire reported in mid-June.

The financing, which consists of a $390m first-lien term loan, a $160m second-lien term loan and a $50m revolver, was going to be pre-marketed in New York towards the end of last month, the publication added.

A source familiar to the situation disclosed to Unquote that these financing details are correct.

Previous funding
AAC Capital acquired a stake in Loparex in a €230m deal for the business from Finnish paper manufacturer UPM-Kymmene in 2005. Subsequently, ICG invested in Loparex, alongside management and private investors, in 2015. The investment represented the last exit of ICG Europe Fund V, a vehicle with a five-year lifespan that closed on €2.5bn in January 2013, 18 months after it was launched.

The 2015 transaction saw Investec Corporate & Acquisition Finance arrange a senior secured debt facility to support the deal as part of a club financing package. The eight-strong debt syndicate also included ABN Amro, BNP Paribas, GE Bank, ING, HSBC, Bank of Ireland and Rabo Bank.

Company
Founded in Finland in 1905, Loparex manufactures and supplies poly-coated and silicone-coated papers and films for pressure-sensitive adhesive applications.

In 2008, the company sold its plants in Finland and the UK to South African paper producer Mondi's coating division. The paper manufacturer went on to refinance its existing debt in 2011 with a €145m five-year loan from Rabobank, ABN Amro, Bank of America and HSBC.

Currently based in Apeldoorn in the Netherlands, the firm has additional offices in the US, China, and India.

People
Pamplona Capital Management – Martin Schwab, William Pruellage (co-managing partners).
Loparex – Simon Medley (CEO).

Advisers
Equity – William Blair (corporate finance).

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• Topics
• Buyouts
• Exits
• Benelux
• Industrials
• Netherlands
• Intermediate Capital Group
• Pamplona Capital Management
• Secondary buyout