Clayton, Dubilier & Rice (CD&R) has signed a $1.7bn agreement to acquire German packaging group Mauser from Dubai International Capital (DIC).
Acquired by the US-based private equity firm DIC for $1.1bn in 2007, Mauser produces rigid industrial packaging and has consolidated revenues of over $1.6bn. Under the ownership of DIC, the company increased its footprint across key products and geographies and currently operates out of 83 facilities across 18 countries. From 2007 to 2013, the company's adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins expanded from 10.7% to 12.3%.
CD&R partner David Novak said that the company is expected to benefit from the combination of end-market growth as well as operating upcoming improvement initiatives.
"Mauser is a competitively well-positioned, resilient business with strong exposure to the higher growth sub-segments of the rigid industrial packaging market in North America and Europe," Novak added.
DIC chief executive officer David Smoot said: "Mauser has been a very successful investment for DIC, providing a return of approximately double our equity invested."
Mauser produces plastic and steel drums and intermediate bulk containers for the chemical, industrial and food and drinks industries. It also provides reconditioning services for used plastic drums and intermediate bulk containers.