KKR has emerged as the preferred bidder for Portuguese packaging company Logoplaste after rival Apax Partners withdrew from the auction to acquire the business in a potential deal worth more than €1.7bn including debt, according to Private Equity Wire, citing a report by Bloomberg.
The US private equity firm is now reportedly in exclusive discussions with Logoplaste’s owners, with the report citing unnamed people familiar with the matter as suggesting that a deal could be agreed in the coming weeks, according to Private Equity Wire. Discussions remain ongoing and there is no guarantee that an agreement will be reached.
Auction process and current status
KKR and Apax had previously submitted binding offers for Logoplaste as part of a competitive auction, according to Private Equity Wire.
Apax withdrew from the auction to acquire the business, and KKR subsequently emerged as the preferred bidder in the process, according to the report.
Representatives for KKR, Apax, Logoplaste and Ontario Teachers’ reportedly declined to comment.
Ownership and potential post-deal structure
Ontario Teachers’ Pension Plan Board owns 60% of Logoplaste and has been working with advisers on the sale, according to the report.
The Canadian pension investor acquired its majority interest from Carlyle Group in a transaction that valued the company at about €1.4bn including debt.
Logoplaste chairman Filipe de Botton, a member of the founding family, and board member Alexandre Relvas own the remaining 40% of the company.
De Botton and Relvas could retain an interest in the business following a transaction, according to people familiar with the process cited in the report.
Company profile
Logoplaste generates around €1bn in annual revenue and operates more than 60 manufacturing facilities across 16 countries, according to the report.
The company specialises in a “wall-to-wall” production model, locating packaging manufacturing operations directly at customer sites.
Its customers include Kraft Heinz, Diageo and L’Oréal, giving the business exposure to large multinational consumer and food-and-beverage companies.
Private equity firms such as KKR typically pursue acquisitions through negotiated sale processes and competitive auctions, which are widely used transaction formats for large corporate carve-outs and sponsor-to-sponsor deals.
