ÅR Packaging Group AB to be acquired by CVC Capital Partners

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| Source: ÅR Packaging Group AB

PRESS RELEASE

May 30, 2016

 

AR PACKAGING TO BE ACQUIRED BY CVC CAPITAL PARTNERS

AR Packaging announced today that funds advised by CVC Capital Partners have signed a binding agreement to acquire ÅR Packaging Group AB. Under the terms of the transaction, CVC will acquire 100% of the company from its current owners, Ahlstrom Capital and Accent Equity.

Founded in 2011 through the merger of A&R Carton and Flextrus, AR Packaging is one of Europe's leading packaging companies with sales of approximately 560 MEUR (pro forma 2015) and 2200 employees across 17 factories in 9 countries. The company has performed strongly in recent years, posting a 27% increase in net sales last year.

Headquartered in Lund, Sweden, the group is divided into three divisions:  Branded Products, Barrier Packaging and Food Packaging. Its products and solutions are predominantly used for folding carton and flexible packaging, as well as machinery systems, packaging design and development. AR Packaging has long-standing customer relationships with many of the world's leading consumer brands in the food and tobacco segments.

"We are on an exciting trajectory, building on last year's strong performance and operational progress, and I would like to take this moment to thank Ahlstrom Capital and Accent Equity for their support over the last years," says Harald Schulz, President and CEO of AR Packaging. "We are now well placed for the next phase of our development and CVC's expertise, financial resources and global network make them the perfect partner to help us achieve our long-term growth ambitions."

Peter Törnquist, Chairman, CVC Nordic, said:
"AR Packaging is a key player in the European packaging space with an excellent management team, a strong product portfolio and many strategic client relationships. We believe there are significant opportunities to grow the business organically and through acquisitions while continuing to put the customers first. We look forward to deploy CVC's global resources and to work with AR Packaging's management team and employees in achieving their vision for the future."

Hans Sohlström, CEO of Ahlstrom Capital:
"Ahlström Capital has been the main shareholder in AR Packaging and its predecessor A&R Carton since 2000. It has been a pleasure to work with the management to build AR Packaging into a leading speciality packaging company that now stands on a strong footing to pursue the next steps in its development. In CVC, the company will have a strong and global partner for the future and I would like to wish them and the management team all success in the next phase of the company's international growth."

Jan Ohlsson, chairman and founder of Accent Equity Partners AB, investment advisor to Accent Equity, said:
"We would like to thank the employees and management team of AR Packaging for a close and productive cooperation over the past years. The company is now well placed to continue its expansion and we wish them every success as they continue their journey with CVC."

The completion of the transaction is subject to customary regulatory clearances.

For further information, please contact:
Harald Schulz, President and CEO of AR Packaging, phone +49 6192 406 100

About AR Packaging
AR Packaging is one of Europe's leading companies in the packaging sector with net sales of approximately 560 MEUR (pro forma 2015) and 2200 employees across 17 factories in nine countries. The head office is situated in Lund, Sweden. AR Packaging was formed in 2011 as a merger of A&R Carton, one of Europe's leading carton board packaging companies and Flextrus, a leader in northern Europe within flexible packaging. The group creates added value to customers by a broad product offering and deep knowledge of packaging. AR Packaging has an objective to grow both organically and by way of acquisitions.
www.ar-packaging.com

About CVC Capital Partners
CVC Capital Partners is one of the world's leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of 24 offices and over 300 employees throughout Europe, Asia and the US. To date, CVC has secured commitments of over US$79 billion in funds from a diverse and loyal investor base, completing over 300 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of over US$120 billion.
www.cvc.com

About Ahstrom Capital
Ahlström Capital is one of Finland's largest investment companies. It creates value for its owners by investing in listed and non-listed companies and real estate. Ahlström Capital Group's balance sheet is approximately 1.3 billion euros and the annual net sales of the group are approximately 1.5 billion euros. Ahlström Capital's portfolio includes significant holdings in the listed companies Ahlstrom Corporation, Munksjö Oyj, and Suominen Corporation. In addition the portfolio includes direct industrial investments in Destia Group Oyj, Enics AG and ÅR Packaging Group AB, as well as major real estate and forest holdings.
www.ahlstromcapital.com

About Accent Equity
Founded in 1994, Accent is a private equity pioneer in the Nordic region. Since its inception, Accent funds have invested in close to 70 companies, whereof some 50 have been realized. Accent Equity Partners AB has served as an advisor to seven funds with total commitments of more than EUR 1 billion. Accent's ambition is to develop the portfolio companies into Nordic, European or global players via enduring improvements of the companies' business operations and strategic positions.
www.accentequity.se

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