Irving Place Capital and Oaktree divest Chesapeake to asset management firm

4 July 2013 (Last Updated July 4th, 2013 18:30)

Irving Place Capital and funds managed by Oaktree Capital Management have signed an agreement to sell their ownership interests in packaging company Chesapeake to asset management company The Carlyle Group, for an undisclosed sum.

The Carlyle Group

Irving Place Capital and funds managed by Oaktree Capital Management have signed an agreement to sell their ownership interests in packaging company Chesapeake to asset management company The Carlyle Group, for an undisclosed sum.

Carlyle Europe Partners III, a €5.3bn fund which makes mid and large-cap investments, will provide capital for the investment.

The Carlyle Group plans to further develop the UK-based packaging company's international footprint and invest in delivering better products and services.

The combination of Carlyle's global presence and network and the strength of its existing footprint and customer relationships are expected to help drive growth and new market opportunities going forward.

Chesapeake CEO Mike Cheetham said that the backing from Carlyle will support the company's goal to build upon its investments over the past three years.

"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," he said.

The acquisition and recapitalisation of Chesapeake was completed by Irving Place Capital and Oaktree Capital in May 2009.

Irving Place Capital senior managing director Phil Carpenter said: "The business is well positioned for continued success and we wish our management partners and the employees the very best as they lead Chesapeake on to its next phase of growth."

Chesapeake is a global supplier of speciality paperboard packaging to the pharmaceutical, confectionary, and drinks markets. It produces folding cartons, leaflets and labels.

The company operates from 38 sites located throughout the UK, continental Europe, the US and Asia.


Image: Irving Place Capital and Oaktree sell ownership interests in Chesapeake to The Carlyle Group. Photo: courtesy of Chesapeake Limited