DBAG buys Cartonplast from Stirling Square

The GP bought 90% of the company, while the management will retain the remainder, in a deal that gives the company an enterprise value of €300m, equal to 7.9x its 2018 EBITDA, Unquote understands.

The GP deployed capital from DBAG Fund VII, which held a final close on its €1.01bn hard-cap in July 2016. Cartonplast is the eighth investment made by the vehicle, which is now around 71% deployed. To finance the deal, the GP also drew capital from Fund VII's sub-fund, a €202m vehicle used for larger transactions that is now approximately 59% invested.

DBAG itself also co-invested around €26m alongside DBAG Fund VII and will directly control 17% of the shares in Cartonplast, while the company's management will retain a minority stake in the business.

A debt package of around 5x EBITDA was provided by Goldman Sachs to support the buyout, Unquote understands.

The GP intends to support the company's further growth and internationalisation, as well as the expansion of its product offering through the additional rental of plastic pallets and covering caps.  

The sale ends a six-year holding period for Stirling Square Capital Partners, which acquired Cartonplast in a management buyout from private equity firm Synergo. Unquote understands that the GP made a 3.4x return on the investment.

Company
Established in 1985 and headquartered in Dietzenbach, Cartonplast rents out, collects and cleans reusable and recyclable plastic layer pads used as divider sheets in the transportation of glass containers and cans for the food and beverage industry.

The company operates from 17 locations across Europe, Turkey, Russia, Brazil and South Africa. It generated EBITDA of €38m from revenues of approximately €80m in 2018 and expects to exceed EBITDA of €40m in 2019.

People
DBAG – Tom Alzin (managing director).
Cartonplast – Serkan Koray (CEO).

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• Topics
• Buyouts
• DACH
• Industrials
• Deutsche Beteiligungs AG
• Stirling Square Capital Partners
• Germany
• Secondary buyout
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