The Sagol family has agreed to sell a majority state in housewares and consumer products molder Keter Group to a London-based private equity firm and Canadian pension investment fund.
BC Partners and Public Sector Pension Investment Board announced July 28 that they agreed to buy a majority stake in Keter in a deal scheduled to close in the fourth quarter. Terms were not disclosed, but Israel news media Globes Online pegged the majority stake at 80 percent and the value of the deal at $1.3 billion.
London-based BC Partners manages investments worth more than 100 billion euros ($114 billion). PSP Investment, based in Montreal, manages about C$116.8 billion (US$89.5 billion) in investments for such agencies as the Canadian federal Public Service, the Canadian Armed Forces and the Royal Canadian Mounted Police.
“Keter is a thriving, innovative and fast growing market leader, with highly distinctive competitive strengths and a strong corporate culture,” noted BC Partners managing partner Jean-Baptiste Wautier in a news release.
“Our investment in Keter is another example of our private equity strategy to invest in innovative companies with attractive growth prospects, alongside select partners that provide sector expertise and geographic diversity,” said PSP Investments senior vice president and global head of private investments Guthrie Stewart.
BC Partner's stake in Keter would be its first direct investment in Israel.
Keter's annual sales reportedly are about $1 billion. About half of the company's sales are from products launched in the past three years. It operates 18 factories globally that churn out plastic furniture, garden sheds, toolboxes, housewares, bathroom cabinets, play houses and other consumer and recreational goods.
“Our partnership with BC partners will enable us to accelerate the development of Keter and we look forward to working with BC Partners on this new chapter of Keter's journey,” said Keter founder Sami Sagol in a news release.