Dubai International Capital signs agreement for the sale of Mauser to Clayton, Dubilier & Rice for c. $1.7 billion

Dubai International Capital signs agreement for the sale of Mauser to Clayton, Dubilier & Rice for c. $1.7 billion

Dubai International Capital LLC (‘DIC’), the private equity arm of Dubai Holding, today announced that it has signed an agreement for the sale of MAUSER Group (‘MAUSER’ or ‘the Group’) to Clayton, Dubilier & Rice (‘CD&R’) for c. $1.7 billion. MAUSER, which was acquired by DIC in 2007 in a deal that valued the Group at c. $1.1 billion, is a worldwide leading producer of rigid industrial packaging with approximately 4,400 employees and consolidated revenues of over $1.6 billion.
David Smoot, Chief Executive Officer of DIC, commented: “MAUSER has been a very successful investment for DIC, providing a return of approximately double our equity invested. We partnered with a strong management to improve the Group from both a strategic and financial perspective, and now is the right time for it to continue its development under new ownership. MAUSER is well positioned to drive further growth and profitability given its attractive global platform.”

MAUSER Group CEO, Hans-Peter Schaefer, commented: “On the behalf of our entire management I would like to thank DIC for supporting MAUSER through what was an incredibly successful period of growth for the business. In the seven years under DIC’s ownership, we worked closely together to increase MAUSER’s footprint and customer offering, as well as significantly improve its operational efficiency. I am looking forward to working with CD&R to continue building on MAUSER’s success.”

Under DIC’s ownership, MAUSER significantly increased its footprint across key products and geographies. MAUSER now operates out of 83 facilities across 18 countries, up from 53 facilities in 12 countries in 2007. Profit margins are now industry-leading and have steadily increased from 2007 to 2013. During this period adjusted EBITDA margins expanded from 10.7% to 12.3%.

Sonja Terraneo, Partner of CD&R said: “MAUSER has a strong track record of innovation, which has helped the company firmly establish itself as a market leader. There are exciting opportunities for further growth and we are looking forward to working with the management team to unlock value and continue to deliver success.”

Bank of America Merrill Lynch acted as exclusive financial advisor to DIC. Latham & Watkins provided DIC with legal counsel.

The sale and purchase agreement is conditional upon receipt of all appropriate anti-trust approvals.