Carlyle will build on recent growth to further expand international operations
The Carlyle Group has bought Chesapeake, a global supplier packaging products and services from Irving Place Capital and a group of funds managed by Oaktree Capital Management. No financial details have been revealed.
Chesapeake, headquartered in Nottingham, UK, has approximately 5,000 employees across 38 sites in 9 countries and revenues of €580m in 2012.
The firm produces cartons, leaflets and labels for the pharmaceutical, confectionery and premium drinks markets.
The deal comes four years after Oaktree and Irving Place took control of Chesapeake, which was then based in the US, moving its headquarters to the UK.
Chesapeake Chief Executive Mike Cheetham said: ‘We are delighted to have Carlyle working with us as we continue building on the strong reputation we have earned for our high quality products and services.
This collaboration will allow us to respond effectively to new business opportunities
‘Carlyle’s backing will support our aspirations to build upon our strong investments over the past three years as we further grow and develop our business.
‘This collaboration will allow us to respond effectively to new business opportunities as we look to further align our business with our customers’ global requirements.’
Carlyle Europe Partners Managing Director described Chesapeake as a ‘strong business focused on attractive growth markets’.
He said: ‘The management team has delivered sustained growth and significantly strengthened the company in recent years.
‘We look forward to partnering with them to further develop the company’s international footprint and to invest in delivering industry leading products and services.
‘We believe the combination of Carlyle’s global presence and network and the strength of the company’s existing footprint and customer relationships will help drive significant growth and new market opportunities in the coming years.’
Moorgate Capital advised on the deal and Nicholas Mockett, Head of Packaging M&A, said: ‘Carlyle’s investment in Chesapeake highlights the increasing importance of packaging in consumer marketing and the vital role that packaging plays in highly regulated industries, such as pharmaceuticals, in protecting the end user.
‘There has been a sea change in this segment in recent months, with Contego Healthcare being acquired by Filtrona (now Essentra) for £160m and sister company Contego Cartons being acquired by Graphic Packaging of the US.’