CD&R's Mauser to raise $100m in IPO

José Rojo
11 August 2015

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Mauser Group, a packaging manufacturer owned by Clayton Dubilier & Rice (CD&R) since 2014, is looking to raise $100m in its upcoming listing on the Nasdaq.

Although Mauser's physical headquarters remain in Brühl, Germany, the business was incorporated as a legal entity in the Netherlands prior to being acquired by CD&R for €1.2bn in May 2014.

Its upcoming listing features Bank of America Merrill Lynch and Citigroup as lead underwriters alongside Credit Suisse Securities, Baird, Deutsche Bank Securities and Jefferies. A 180-day lock-up period has been established for the sale of further shares after the flotation.

According to Mauser, proceeds are to be dedicated to bring down debt levels after securing loans from Credit Suisse, Barclays, BNP Paribas, ING Capital, Natixis and Nomura Securities International during the buyout in 2014. The company currently holds €1.049bn in debt for a total capitalisation of €1.298bn.

In addition, the fresh capital will assist the packaging manufacturer as it targets expansion across the chemical, food, beverage, agrochemical and pharmaceutical sectors.

There are plans to continue Mauser's bolt-on strategy, which has seen the business invest €128m to finance 28 acquisitions since 2007, with joint ventures in Spain, Italy, South Africa, Mexico, China and Turkey. According to the company, three add-ons have been carried out for a combined €22.6m in 2015 alone.

The announcement of IPO plans for Mauser comes two months after €97.5m was distributed among the company's shareholders, the only dividend recap to take place since CD&R's takeover in 2014.

According to unquote" data, Mauser has witnessed four private equity buyouts since the 1990s. In 1997, it was bought from its local parent by Parcom Capital, which divested its stake to German firm One Equity Partners (OEP) in 2003.

In May 2007, OEP reaped €850m in proceeds as it sold Mauser to Dubai International Capital in an auction run by JP Morgan. In July 2014 CD&R deployed approximately €1.2bn to wholly acquire the company via the CD&R Millennium Holdco 2 newco.

Founded in 1896, Mauser is an industrial packaging manufacturer. The company sells plastic, metal and fibre products to clients within the chemical, petrochemical, food, beverage and pharmaceutical industries. Its customer base includes Bayer, Chevron, Dow Chemical, ExxonMobil and Shell.

Mauser operates 98 production sites across 76 locations in 18 countries and employed 4,400 staff in 2014. The business most recently reported €1.243bn in revenues, with an adjusted EBITDA of €162.1m.