21 Invest admits four to next round of Carton Pack sale

Micaela Osella, Valentina Caiazzo, Min Ho
26 November 2021

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21 Invest has selected four parties to go to management presentations for the sale of Italian food packaging player Carton Pack, according to several sources.

Private equity firms still in the mix include White Bridge, Alvarez & Marsal Private Equity and a third unnamed financial backer, according to six sources familiar with the situation.

Among trade suitors, Germany's Klöckner Pentaplast has been admitted to the next round, two of the sources said, anticipating that this bidder could emerge as the favourite.

German M&A valuations are outpacing those found in the Italian market, meaning Klöckner Pentaplast may have greater comfort with a higher multiple than financial sponsors, one of these two sources argued.

The vendor is looking for a double-digit million valuation, based on the company's heritage and market position, as reported. However, Carton Pack is a single asset site in the Puglia region and serves the farming industry with plastic packaging products, which could make it less attractive to a buyer, Mergermarket reported earlier in November.

Among those leaving the chase are Chequers Capital, Clessidra Private Equity, Investindustrial and Ardian, which appear to have stepped aside from the auction, sources added.

Binding offers are expected the week before the Christmas holiday break, all the sources said. Some offers have come in above the minimum asking price of EUR 160m, several sources added.

In September, Mergermarket reported that 21 Invest had hired Vitale&Co and William Blair to advise on a sale. The transaction entails an 80% stake owned by the sponsor, but a full sale has not been ruled out.

21 Invest acquired its stake in Carton Pack in July 2018, investing via its 2-15-vintage, EUR 343m 21 Investiment III vehicle, according to Unquote Data. The Leone family kept the remaining 20% stake.

Clessidra, Chequers, Klöckner Pentaplast and Investindustrial did not return requests for comment. Ardian, Alvarez & Marsal, 21 Invest, Carton Pack and Vitale declined to comment.