Carlyle picks up Oaktree's Chesapeake

Alice Murray
03 July 2013

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Carlyle has acquired packaging company Chesapeake from Irving Place Capital and Oaktree Capital Management.

It is understood that Carlyle invested between £400m and £500m.

Investment for the deal comes from the €5.3bn Carlyle Europe Partners III fund. Carlyle plans to expand the company's international presence and take advantage of new market opportunities.

Previous funding
Irving Place and Oaktree Capital rescued Chesapeake in May 2009 from chapter 11 bankruptcy proceedings in a deal valued at $485m. The company filed for bankruptcy in December 2008 as it struggled with debt repayments. The deal saw the company transition from being a publicly traded business in the US to a privately owned UK entity.

Company
Headquartered in Nottingham, Chesapeake employs nearly 5,000 people across 38 sites in nine countries.

The business produces paper leaflets, labels and cartons. Clients are typically in the pharmaceutical, confectionery and drinks markets.

People
Eric Kump is managing director of Carlyle. Mike Cheetham is CEO of Chesapeake.

Advisers
Equity - Moorgate Capital, Nicholas Mockett (Corporate finance); Latham & Watkins, David Walker, Dominic Newcomb (Legal); KPMG, Robert Ohrenstein, Aneesh Maloo, Ian Elphick (Financial due diligence); KPMG, Tony Cheadle, Simon Page (Tax due diligence).