Klöckner Pentaplast not for sale any more

German packaging maker Klöckner Pentaplast, which was reported to be up for sale by its hedge fund owner SVP Global in June this year (http://www.plasticsandrubberasia.com/june2014/company2.html), has been taken off the market again, according to a Reuters report. The reason given was that SVP received offers well below its asking price of EUR1.5 billion.

According to the report, the potential buyers were buyout group Apollo as well as US-based speciality chemicals firm PolyOne. The latter subsequently denied any involvement.

Klöckner Pentaplast was bought by SVP from private equity firm Blackstone that in turn had bought the company from Cinven in 2007, backed by EUR1.25 billion of leveraged loans.

SVP tried to sell Klöckner Pentaplast last year but failed after potential buyers could not meet the asking price.

The recent asking price tag of EUR1.5 billion would have valued Klöckner Pentaplast at more than eight times its expected annual earnings before interest, tax, amortisation and depreciation (EBITDA) of just below EUR180 million, said the Reuters report.

In the first half of the 2014 fiscal year, adjusted EBITDA for the firm increased by 6.7%, versus the prior year, to EUR87.7 million. For the last 12 months, adjusted EBITDA has increased from EUR167 million to EUR179.2 million, for the global leader that provides packaging, printing, and speciality solutions serving the pharmaceutical, medical device, food, beverage, and card markets among others.

Founded in 1965 as a steel/machinery unit of Kloeckner-Werke, Klöckner Pentaplast also makes pipe insulation and other products. It has grown from its initial facility in Montabaur, Germany, to current operations in 12 countries with 18 production sites. The company employs more than 3,000 people.


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