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MAJOR CREDIT FACILITY

Investcorp backs US firm with $610m refinancing

Manama, April 4, 2013

Bahrain-based private equity firm Investcorp yesterday announced the completion of a dividend recapitalisation of Chicago-based Berlin Packaging, in which it retains a majority stake acquired in 2007.

Proceeds from the new $610 million credit facility will be used to refinance current debt and make a distribution to shareholders and existing management, who will continue to retain their existing equity in the company, said a report in our sister publication, the Gulf Daily News.

The recapitalisation was done in partnership with Berlin's founders and management team, the Bahrain Bourse listed alternative asset manager said.

Berlin Packaging is the leading full-service hybrid packaging supplier of plastic, glass, and metal containers and closures in North America.

Since 2007, the company has doubled revenues and has been able to increase profitability each year despite the economic downturn.

In addition to encouraging strong organic growth, Investcorp has also been supportive of Berlin's desire to grow through the add-on acquisitions of All-Pak and Continental Packaging Solutions in 2010 as well as Lerman Container and United States Container Corporation in 2012, all of which strengthened the company's nationwide footprint and capabilities.

"Berlin Packaging's growth since 2007 is a testament to Investcorp's ability to help develop businesses both organically and inorganically and achieve profitability," Investcorp president for Gulf business Mohammed Al Shroogi said.

"We look forward to supporting Berlin Packaging's management through this important phase and as they continue to deliver on their value enhancement strategy," he added.

"Through our partnership with Investcorp, we found an investor that has been, and continues to be, committed and eager to support our short and long-term growth objectives," Berlin Packaging chairman and chief executive Andrew Berlin said.

"Although market conditions suggested scaling back during the downturn, we viewed it as an opportune time to invest meaningful resources into our sales operations - positioning us to better serve our customers and drive growth for our business.

"Looking ahead, we're excited to continue our partnership with Investcorp to develop new and innovative ways to further accelerate Berlin Packaging," he added. – TradeArabia News Service




Tags: Investcorp | Credit | dividend | Baharin | refinancing |

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