ColepCCL acquires Czewo and strengthens its European position
ColepCCL S.A. strengthens its European position in the contract manufacturing of consumer goods through the acquisition of the share capital of Czewo Full Filling Service GmbH (Czewo).
Czewo is an international company, operating in similar market segments to ColepCCL, with 40 years experience in the contract manufacturing of aerosols and liquid products.
In 2007, Czewo had sales of 140 million euros across Europe and generated operational cash-flow (EBITDA) of approximately 13.8 million euros. The company employs approximately 650 people in its 3 German plants and has experienced significant growth since its acquisition, in 2005, by Argantis GmbH, a professional private equity partner to Germany?s small and mid cap companies.
With this acquisition, ColepCCL will have sales of approximately 520 million euros, will operate in 5 countries across 9 manufacturing sites, and will employ 2,800 people.
Enterprise value for transaction purposes, including debt, was approximately 87 million euros.
The acquisition of Czewo by ColepCCL enables these two manufacturers, both partners of major brand-owners, to complement and further expand their respective strengths. By leveraging on its increased scale and geographical spread the new company will be able to offer better security of supply and speed to market. Through the optimisation of processes, exchange of best practices and continuous investment in Innovation, the new company will be better equipped to serve the growing outsourcing needs of the industry.
Building on the success story of its foundation, ColepCCL sees this acquisition as a strategically important milestone to fulfill its mission of providing value to its customers by strengthening the industries in which it operates.
Closing, which is expected to occur by September 2008, is subject to regulatory approvals. Until completion both companies will continue to be managed separately and independently by their respective management teams.
ColepCCL S.A. is a major supplier of aerosol based products, a pan-European manufacturer for the personal care & beauty market, healthcare and homecare markets, and a pan-European player in the can-making industry. ColepCCL was established in 2004 through the merger of Colep and the European Custom Manufacturing Division of CCL Industries. In 2007 the company had sales of 380 million euros and employed 2,100 people in its 5 plants in Germany, Portugal, Poland, Spain and the UK.
Czewo Full Filling Service GmbH is an international company with 40 years of experience in contract manufacturing and contract filling of aerosols and liquid products operating in similar markets.
RAR Group is one of the most important Portuguese economic groups, spanning a diverse portfolio including contract manufacturing and packaging, food products, real estate, services, tourism and financial investments. With consolidated revenues in 2007 of approximately 800 million Euros, the RAR Group employs around 3,700 employees, in Portugal, Spain, United Kingdom, Germany and Poland.
Argantis GmbH is a skilled and professional private equity partner to Germany?s small and mid cap market