Carlyle offer values Logoplaste at 660 mln euros

Logoplaste CEO says in talks with other potential buyers (Adds advisers, background)

Buyout group Carlyle is in advanced talks about investing in family-owned Portuguese plastics packaging firm Logoplaste, three people familiar with the matter said on Thursday.

Carlyle's offer values the entire company at roughly 660 million euros ($740 million), or about 8.5 times Logoplaste's expected 2016 EBITDA of 78 million euros, one of the people said.

Logoplaste founder and Chief Executive Filipe de Botton said he was still talking to more than one potential buyer, but would not give names.

"We are seeking to sell between 30 and 50 percent in order to increase the capital of Logoplaste and be able to meet the increase we are facing with our partners with new factories and all options are open at the moment," he said.

"We still expect to keep control of the company. We are likely to have some news on that in the next 10 to 15 days."

Carlyle was not immediately available for comment.

De Botton had told Reuters earlier this year that he was studying ways to finance Logoplaste's expansion.

Credit Suisse had been mandated to explore possible options including a partial sale of the business, which had attracted private equity groups including Advent, which was the last to drop out of the race.

Logoplaste's products include bottles for the Lucozade and Jose Cuervo drinks brands, and detergent Fairy liquid.

Logoplaste is owned by the de Botton family. Filipe de Botton is a former banker and a keen offroad vehicle racer who founded the company in 1976 with his father. The company manufactures rigid plastic packaging for companies, managing over 59 factories in 17 countries.

Packaging businesses are viewed as attractive investments by funds as they are seen having reliable cash flows, being more immune to economic cycles than other sectors since they are mostly driven by the food, drink and personal care industries.

De Botton had said that Logoplaste's annual turnover was around 650 million euros and should rise above 1 billion euros in the next three or four years.

 

Source : reuters.com

Report Abuse