By: Jim Johnson
May 12, 2014
Private equity firm Clayton, Dubilier & Rice LLC is acquiring Mauser Group, an industrial packaging company that makes plastic packaging, drums and intermediate bulk containers, from Dubai International Capital LLC.
Mauser, which also reconditions used plastic drums and IBCs, has locations in North America, Latin America, Europe and Asia.
The transaction is valued at approximately $1.7 billion for the company that also had more than $1.6 billion in revenue last year, Dubai International Capital said.
Mauser, based in Bruhl, Germany, near Cologne, serves customers in the food, beverage, chemical, agrochemical, petrochemical and pharmaceutical markets. The company also sells blow molding machinery to other firms.
“Mauser has been a very successful investment for DIC, providing a return of approximately double our equity invested,” CEO David Smoot said in a statement.
Dubai International Capital acquired Mauser in 2007 for about $1.1 billion.
“We partnered with a strong management to improve the group from both a strategic and financial perspective, and now is the right time for it to continue its development under new ownership,” Smoot said in the statement.
Mauser grew from 53 locations in 12 countries to 83 locations in 18 countries under Dubai International Capital’s control. The company’s reconditioning services are provided through its National Container Group unit.
“Mauser is a competitively well-positioned, resilient business with strong exposure to the higher growth sub-segments of the rigid industrial packaging market in North America and Europe,” said CD&R Partner David Novak said in a statement. “We believe the company will continue to benefit from the combination of attractive, end-market growth and new operating improvement initiatives.”
Along with its work in plastics, the company also makes fiber drums and steel drums.
Dubai International Capital is part of Dubai Holding, which is owned by Sheikh Mohammed Bin Rashid Al Maktoum, ruler of the emirate. The sale of Mauser is part of a larger divestiture push designed to raise money to pay down debt.