DBAG sells Infiana to Pamplona

Katharine Hidalgo
09 July 2019

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Deutsche Beteiligungs AG (DBAG) has agreed to sell specialised films developer Infiana to Pamplona Capital Management.

Pamplona will draw equity from its Pamplona Capital Partners V fund, which closed on $3.2bn in 2017. The firm recently acquired Netherlands-based packing company Loparex from Intermediate Capital Group and is expected to merge it with Infiana, according to reports by Unquote sister publication Mergermarket. The combined company could have a valuation of 9-10x EBITDA, approximately €100m, according to reports.

Both DBAG and the management team have sold their stakes, though the current managers will continue to lead the company.

The company was one of DBAG Fund VI's 11 portfolio companies and is the fourth exit for the fund. In February 2019, the firm chose Baird to run the auction. The firm will more than double its original capital investment through the sale.

During DBAG's holding period, the company was carved out from its corporate owner, it invested in modernising and expanding its production facilities and disposed of its Brazil and Thailand-based business units.

The company generated €227m in revenues for 2018, up from €202m in 2017 and €187m in 2013. The company generated EBITDA of more than €30m in 2018 up from adjusted EBITDA of €25m in 2016.

Previous funding
DBAG and DBAG Fund VI acquired a stake in Infiana (then called Huhtamaki Films) from Finland-based Huhtamäki Oyj in 2014. DBAG contributed €11.5m from its balance sheet for a 17% stake in the all-equity buyout, which had a total purchase price of €141m. DBAG Fund VI acquired the remaining stake alongside the company's management team. The combined stake of DBAG entities was around 92%.

The firm later invested €23.7m of equity in the company, according to reports.

Company
Infiana develops and produces specialised films for the industrial and retail markets. Headquartered in Forchheim, Germany, the company operates a production site in the US and one in Germany. The company was founded in 1854 and employs around 800 people.

People
Pamplona Capital Management – Martin Schwab, William Pruellage (managing partners).
Deutsche Beteiligungs AG – Rolf Scheffels (member of the management board).
Infiana Group – Peter K Wahsner (chief executive officer).

Advisers
Equity – Barclays (corporate finance); Mesirow Financial (corporate finance); Milbank (legal).
Vendor – Robert W Baird (corporate finance).