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Blackstone ‘selling German plastics subsidiary’
Posted on Thursday, 21 June 2012 13:09
US private equity firm Blackstone is close to announcing its exit from Klöckner Pentaplast, according to Reuters, citing three people familiar with the matter.
The people told the news provider the firm will sell the Germany-based plastics manufacturer to Connecticut-based investor Strategic Value Partners (SVP).
Commenting on the terms of the deal, the sources added that senior lenders would get back loans at face-value, but that New York-based Blackstone’s remaining equity stake, which is worth around EUR 100.00 million, would be lost.
SVP will reportedly buy the company in conjunction with junior lenders.
Early last week Bloomberg BusinessWeek said the target has debts amounting to approximately EUR 1.20 billion, which it stated could be reduced to under EUR 500.00 million via a deal that would see Oaktree buy the business in a restructuring.
However, no further information regarding the possibility of such a transaction going ahead was revealed following the report.
Klöckner Pentaplast is headquartered in Heiligenroth and employs more than 3,000 people.
The business was founded in 1965 and now has production activities in 11 countries.
According to its website, the company is a world leader in the production of plastic films for pharmaceutical, medical device, food, electronics, and general-purpose thermoform packaging, as well as printing and specialty applications.
Blackstone provides a range of services including asset management, financial advisory and private equity investment.
The company was formed by chief executive Stephen Schwarzman in 1985, and now has 22 offices worldwide.
It employs 1,580 people and listed on the New York Stock Exchange in 2007.
Blackstone’s private equity portfolio includes outdoor clothing maker Jack Wolfskin, theme park operator SeaWorld, and German telecommunications giant Deutsche Telekom.
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