HIG sells ARMetallizing to Nissha

José Rojo
07 August 2015

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ARMetallizing (ARM), a Belgian packaging group created via HIG Capital's merger of two companies in 2012, has been sold by the GP to Japanese listed corporate Nissha Printing.

According to unquote" sources, the trade sale comes after an auction process was set up for ARM by Harris Williams in Europe and the US, which attracted bids from both private equity and strategic buyers.

The exit comes three years after HIG acquired Belgium-headquartered ARM and US-based Vacumet Paper from respective corporate parents Ackermans & van Haaren and Scholle Corporation. The firm drew equity from its €600m HIG Europe I fund.

The takeover featured capital from ARM's CEO Paul Van Emmerick and CFO Martin Raeymakers, who secured a significant interest in the newco.

The GP then merged the two assets into a metallised paper packaging group operating under the ARM brand. The conglomerate, incorporating Vacumet's 21,500 tons per year production capacity, was believed to generate €120m in revenues at the time.

Under HIG's three-year tenure, ARM has expanded internationally, with a focus on South America, and has targeted new sectors including consumer packaged goods. According to the company, the strategy has boosted its customer base up to 300 across 80 different countries, served from three production centres in Belgium, Italy and the US.

Also during HIG's holding period, ARM underwent a debt refinancing featuring ING, KBC and Belfius Bank, according to unquote" sources.

HIG has been active on the buy-side over the last few months, with stakes acquired in Nordic taxi service Fågelviksgruppen, valued at an estimated SEK 2-3bn during an MBO in April, and Spanish cosmetics retailer Bodybell, picked up by a group of creditors amid financial woes in the same month.

Company
Founded in 1975 as Alupa, ARM rebranded following the acquisition of Rotoflex in 2009. The current group was formed via the merger with US business Vacumet in 2012, creating a business focused on supplying metallised paper packaging services to 300 customers in 80 countries worldwide.

Headquartered in Genk, the business operates additional offices in Casalgrasso in Italy, and Massachusetts in the US.

People
Managing director Mark Kelly led the deal for HIG. Bart Devos is CEO of ARM.